Federal Communications Commission U Silver Anniversary Report For the Fiscal Year 1959 With anniversary and other historical background UNITED STATES GOVERNMENT PRINTING OFFICE,WASHINGTON~IO.C. Por .ale by .he Superintendent of Document., U.S. Government Printing OlRce Washington 25, D.C. - Price 65 cent. COMMISSIONERS Members of the Federal Communications Commission (A. of June 30, 1959) JOHN C. DOERFER, Chairman (Term expires June 30, 1961) ROSEL H. HYDE (Term, expires June 30. l066) ROBERT T. B,\RTLEY (Term expires June 30, 1965) ROBERT E. LEE (Term expires June 30. 1960) T. A. M. CRAVEN (Term expires June 30. 1963) FREDERICK W. FORD (Term expires June 30, 1964) JOHN S. CROSS (Term expires June 30. 1962) A list of present and past Commissioners appears elsewhere in this report. n L E TTE R 0 F T RAN 5 MITT A L FEDF3RAI, CO:UMUNICATIOXSCO~1l\nSHION, Washington '25, D.O. To the Oongre8s of the United States: Transmitted herewith is the annual report of the Federal Com municatio)1s Commission for the fiscal year 1959. It is of particular interest becanse it marks the 25th anniversary of Government regulation of telecommunications services as coordi nated in and exercised by this Commission. Consequently, in addi tion to containing 19;'9 fiscal year information and data specified by the Congress in section 4(k) of the Commmlications Act, as amended, the report provides historical background to point np the phenomenal growth and development of electrical communication since the Commission was established in 1934. This report also points up current problems which beset the Com mission, and its efforts to resolve them. The attention of Congress. is invited to legislative proposals by the Commission (enmnerated in the special chapter on "Litigation and Legislation") which would assist it materially in this connection. Specifically, i.t requests legislation to clarify and liberalize its au thority over TV "boosters"; certain authority with respect to com mmlity antenna TV systems, also common carrier microwave relay of chain broadcasting programs; elimination of the prehearing notice now required before an application can be designated for hearing; enable it to combat mounting minor violations by the imposition of small fines; correct certain omissions in the Communications Act concerning "ex parte" presentations; permit the Commission to make more use of its review staff; eliminate the present requirement of oaths on routine forms; and give its investigators the same Federal law protection now afforded those in other Government agencies. Pursuant to annual practice, required information concerning em ployees joining and leaving the Commission during the 1959 fiscal yeaI' is being reported in a nonprinted supplement. Respectfully, JOHN C. DOERFER, Ohairman. III Anniversary Greeting The 25th flRl/ni,versary of the Federal OO'fTIImJUnications OO'Tfl, mission affords 'lM, in the na'lM of the Oommission, to pay trib ute to American imagination ana ingenuity which luwe made the United States a world leader Vn telecO'l7lllTlJl.tnication. Modem radio ana wire communication is playing an increas ingly iJmportant role in the American way of life. Rapid ana effioient cO'l7lllTlJl.tnication goes hana in hand with our national welfare ana progress. Its public dividenas cannot be counted· in dollars alone; they are best evinced in the convenience ana timesaving benefits derived from e!lYpediting offioial, commer cial, and private corresponaence, ana in performing other use ful functions. Radiobroadcast is the magic medium that brings information, education, religion, ana entertaiwment into our homes. T ele vision adds image-even in color-to the family enjoyment. What is more, the American sY8tem of broadcasting is by pri vate enterprise, ana the GO'IJeT'/ll7Mnt does not censor programs or erJJact fees for broadcast receiver use. But in a far larger manner, radio is also serving other public, business, ana inaividual needs. It aids lana, water, ana air transportation; it contributes to police and fire protection; it speeds medical ana other emergency assistance; it faoilitates the work of public agencies, cOm'lMToial establishments, and inaivid12als; and it augments common carrier sermces. At the same time, it is reassuring to know that our erJJtensive communi cation sy8tems form a vital link inthe national defense program. Internationally, offioial and private business relatiO'lUJ are furthered by the ability of telephony and telegraphy, whether by radio or cable, to span oceans ana continents within seconds. And technical development8 have opened new frontiers for electronic contact, to the inclusion of over-the-horizon micro wave transmission as well as communication .vith objects in outer apaoe. Oonsequently, the OommissionscWutes not only those who luwe made possible the phenomenal telecOTnAn'lhnwation fl/J(Jom plish'lMnts of the past quarter century but also those who are working on still bigger things to come. JOHN C. DOERFER, Ohairman. IV Table of Contents Paee ANNIVERSARY REPORT SUMMARY. 1 1934 and 1959..... . .. .. .. ... . ... . .. . .. . . .. . . .. . . .. . . .. . .. . .. 1 Broadcast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 General '" . .. . . . . . . . . .. . . . . . .. . 4 n.......................................... 4 FM.......................................................... 5 AM.......................................................... 5 Safety and special. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Common carner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Telegraph. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 International '" , " . .. 7 National defense..... . .. . . .. . . .. . . .. .. .. . 8 Litigation and legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Frequency allocations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Other international conferences... ... . .. . . .. . ... . ... .... ... . ... . .. ... 9 Field engineering and monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Research and laboratory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Commission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 HISTORY OF REGULATION..................................... II Early wire regulation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Early radio regulation... . .. . . .. . . . . . .. 11 Wireless Ship Act of 1910...... .. . . . . . . .. .. . . II Radio Act of J912 '" .. , .. . .. . . .. . 12 World War I period '" , . . 12 Radio Act of 1927. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Federal Radio Commission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Communications Act of 1934 ' . . . . 14 COMMISSION. 17 Commissioners. . . . . • . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Organization chart ,. 16 Staff organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Automatic data-processing study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Personnel.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Appropriations and expenditures.. ,. . . .. . .. . 21 Dockets. 22 Authorizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . 23 Applications. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Correspondence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Releases and publications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 International. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Interilgency.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Industry. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Foreign technical assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 " VI TABLE OF CONTBKTS LITIGATION AND LEGISLATION .. Network rules . National spot sales . Option time... J Network TV program selection practices.. Political broadcasts .. Lar Dal.y case . Comparable time . PoJjtical Jjhel. . "Payoffs" in hearing cases. . . . . Revision of broadcast application forms . Stereophonic broadcasting . Broadcast station sales . Editorializing . \;Announcement of sponsored programs. \.,Programs.... . . Television (TV) broadcast service. Television allocations problems. Television Allocations Study Organization . Deintermixed VHF-UHF systems . 12 VHF system . Alternative courses of action. .. . . 50-channeJ system (retaining present 12 VHF channels). 50~channcIsystem (retaining channels 7-13) .... Litigation.. . '" . Supreme Court decision in SUllgamon Cuurt of Appeals decisions. Carroll case . WLOX case . Functional mu"ic casc. "Ex parte" C8SC8. Wcstel-n Union divestment .. Bendix.AIRINe case. Other court caSC5 .... Court casc stati:-;tics. Legistllion. Enacted law8. FCC legislative program .. Legislation affecting the FCC... Congressional committee work.. NATIONAL DEFENSE ..... Delegation of emergency powers. CONELRAIl.. .. . . OCDM regional boards . Emergency communication . Operation Alert 1958 ... National Defense Executive Reserve.. Defense Steering Committee.. The war years.... BROADCAST SERViCES.... Valley ca;:;e. Page 26 26 26 27 27 28 28 29 ~O :JO ~1 ~1 32 ~2 32 36 ~7 ~8 ~8 ~8 40 -Il 41 41 42 42 44 44 44 44 45 45 45 46 47 47 47 48 48 48 ·{8 49 53 53 54 55 56 56 56 57 TABLE OF CONTENTS BROADCAST SERVICES-Continued Television (TV) broadcast service--Continued Alternative courses ofaction~Continued 25.VHF-ehannel system (retaining channels 7-13) . Present 82 VIIF-lJIlF system, with all sets capable of receiving both VHF and UHF.. . . 70-channel UHF system. . . . . Satellite stations. . . UHF translators. VHF boosters or repeaters. . . . . . . . . . . . Community antenna TV systems.... . . Economic impact of CATV and other auxiliary TV operation . Subscription TV. . . . . . Standard (AI\I) broadcast service.. . . Application backlog. Clear channels 0 0 • 0 • 0 0 0 ••• 0 •••• Daytime skywave 0 • Extended hours proposals for daytime stations . Daytime power increase for class IV stations 0 •• 0 0 •• 0 0 •••• North American Regional Broadcasting Agreement ..... Frequency modulation (FM) broadcast service ..... Commercial FM 0 Subsidiary FM operation . Noncommercial educational FM broadcast. . International broadcast stations. . . Experimental broadcast services. . . . . . . . .. 0 0 ••• 0 •••• Experimental television . Developmental broadcast . Statistics 0 ••• 0 ••••••••••••• Current broadca8t authorizations . Status of broadcast authorizations . Broadcasting since 1934 0 • Broadcast applications . Jlroadcast industry financial data.... SAFETY AND SPECIAL RADIO SERViCES . General . Legal and regulatory problems. . . . . . . . . . .. . . Microwave inquiry . 2S:""S90-megacycle inquiry. . . . . . . . . . . . A.T. & T. consent decree and applications involving Bell contracts.. Marine radio serviccs 0 •••••••••••••• 0 •••••••••••••••••••••••••••••• Safety at sea. . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 0 •••• Safety of Life at Sea Conference, 1960 0 ••••••••• St. La'\VI'cnce Seaway 0 •••• Exemption from compulsory radio requirements . Technical developments and studies . New requirements for equipment. . Tests of vertical antennas.........•....... Single sidehand 0 ••••••••• Radio Technical Commission for Marine Services 0 MOarine radio communication system . VHF radiotelephony for navigational cOlnmunication . VII Pail 57 58 59 60 60 60 61 62 63 64 64 65 65 66 66 67 68 68 69 70 70 70 70 71 71 71 72 72 75 76 80 80 81 81 82 82 83 83 83 83 84 84 84 85 85 85 85 85 VIII TABLE OF CONTENTS SAFETY AND SPECIAL RADIO SERVICES-Continued Marine radio services-Continued Marine radio communication system-Continued Page Changes in 3S-megacycle band. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Coast stations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Radio communication in Alaska. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Aviation services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Aviation organizations and conferences. . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Radio Technical Commiasion for Aeronautics '" . . 87 Air Coordinating Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 International Civil Aviation Organization...... .. . ... . ..... ... 87 Rule amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Public safety radio services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 General '" . . . . .. .. . . .. . . . .. . . 88 Rule changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Police radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Fire radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Forestry conservation radio scnice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Highway maintenance radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Special emergency radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Local government radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 State Guard radio service '" .. 91 Disaster communications service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Land transportation radio services..... . . . . . 91 General. . . . . . . . . 91 Motor carner radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Railroad radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Taxicab radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Automobile emergency radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Citizens radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Industrial radio services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 General. . . .. .. . . .. . . . . .. . . 96 Expansion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Older services _. . . . . . . . . . . . . . . . . . . . . . 97 Private microwave systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Amateur radio service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 General. . . 99 Rule changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 General problems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Unlicensed radio operations , . . .. . . 100 Violations resulting from en:oneous sales advice. . . . . . . . . . . . . . . . 100 Revocation of atation licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Special problems concerning individual services _. . . .. . . . 101 Enforcement of maritime compulsory usage of radio...... . . . 101 Suspension of amateur operator permits. . . . . . . . . . . . . . . . . . . . . . 101 Summary conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Statistics _. . . . . . . . . . . . . . . . 102 Stations in safety and special radio services. . . . . . . . . . . . . . . . . . . . . . . 102 Transmitters in safety and special radio services................ ... 103 Applicatioll8 in safety and special radio services. . • . . . • . . . . . . . . . . . • lOS TABLE OF CONTENTS IX Pare COMMON CARRIER SERViCES.................................. 106 Domestic telephone..... _. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Highlights................. . .. 106 General. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Telephone industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Interstate facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . • 107 Interstate message toll telephone rates. . . . . . . . . . . . . . . . . . . . . . . . • . . 108 Private line telephone rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Private line telegraph rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 ReB System lease.-maintenance service. . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Tariil' filings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Domestic COmmon carrier radio facilities. . . . . . . . . . . . . . . . . . . . . . . . . 109 Microwave relay to CATV systems. III Other regulatory matters. .. .. .. .. . 112 Discontinuance of service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Speed of service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Acquisitions and consolidations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Depreciation... . .. ..........• 112 Original cost accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Relief and pensions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 11S Field Btudies and reviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . US Domestic telegraph. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 General. . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Services and facilities. • . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Modernization and plant improvements. . . . . . . . . . . . . . . . . . . . . . 115 Private wire systems. . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . 116 Intrafax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Facsimile and teleprinter tielines..... . .•.. 116 Telex service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Supplementation of facilities and curtailments of S€'rvice. . . . . . . . 117 Speed of eervice. . . . . . . . . . . . . . . . . . . . . . . . . . . • • . . . . . . . . . . . . . . 117 Rates and tariffs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Domestic telegraph I.'ates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Leased facilities services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Tariff schedules. . . . . . . . . . . . . . . . . • . . . . • . . . . . . . . . . . . . . . . . . . . 119 International telegraph and telephone. 119 Highlight,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Genel.'al. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Problems. . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Revision of policy generally restricting an international carrier to either telegraph or telephone services... ........•........ 120 Incl.'easing scarcity of frequencies allocated to international point-to-point I.'adio sel.'vices..... . . 120 Reevaluation ofrate structure ofinternational telegl.'aph carnen. . 121 Threatened loss of traffic by international telegraph caniers.... 121 Western. Union divestment. . . . . 121 International fonnula. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 International telegraph merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Ocean telephone cables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 TABLE OF CONTENTS COMMON CARRIER SERVICES-Continued Internatfonal'teiegraph andtelephone--Continued "Docket ·cases. . . . . . . . Puerto Rico-applications., . Fat: Eaet" traffic: . Delays iIi ha'ridling international press traffic . Radiotelephone service to Hawaii . Western Uilidn practices under international formula . -Circuits to Turkey and Israel ..- . PartIcipation under international formula. . . Press Wireless license modification " ." . Alternate voice and data lransmil'>sion 1;!>crvice for U.S. Air Force.. Statistics . General . Telepbohe carners . DOirlCstlC telegraph carrier. International telegraph carriers,., " Commoit'carrier applications, , , , . FIELD ENGINEERING AND MONITORING . Growth'of field engineering work, ..- , . , , ,", , ' , , , . Interference ' ,' ' . ' , , , . ' , , . , .. , .. , , , .. Interference by -plastic heaters"", . , ". ., . ,., . " Interference by amateur stations-. -..', . ..' . , . Interference by -garage door openers. "~laliciousinterference , . Carrier current systems . -Low-power communications devices.-. " , , .. , ,. Incidental radiation deviceR ' ,'. . .. " " Industrial, scientific,- and medical equipment . Cooperating groups. Illega.l operation.. , Moni-toring. Location problems. . . .. , ' , ..-. ~IonitoringenfOl'cement problems , .. M-onitoring for interference , , . Monitoring surveiUance and special surveys , .. " Enforcement and survei-llauce..•.... Equipment problems, , - , , . .. . .. . , . SeaTch~and-rescue]>Fogram " ........•.... , . M-arine safety watches , '.'.,.- ...•. " Contractual work .for other- Federal agencies ,'. . . . InspectioDs , , , , , , . Ship.... . . Marine enforcement actions, .. , , ' . . . . , . ·Broadcast ' ..' , ..' .. , .. , ' , , ' , , . Other stations , , .. Commercia) radio operators , . Engineering measurements and surveys . Space communication , .' ' . Antennas ,., ..' ' '., ..' , , . Pilge 122 122 123 123 123 123 123 123 124 124 124 124 124 125 126 128 129 129 129 129 130 130 130 130 131 131 131 131 132 132 132 133 133 134 135 135 136 136 137 137 137 138 138 139 139 140 141 142 TABLE OF CONTENTS FIELD ENGINEERING AND MONITORING-Continued Statistics. . . . . . . . . . . . _ . Investigative statistics. . . . . l\lonitoring statistics. . . . . '.' . Field inspection statiEtics. . , . Applications procc5sed by Antenna Survey Branch , . Proposals referred toRegio~alAirspace Subcommittee . Commercial radio operator licenses ',' '. _.' . Field engineering offices and monito:.:ing stations... . . . RESEARCH AND LASORATORY '" . Technical research . Television studies . Stereophonic broadcasting . Noncommunication systems . Patent aspects of technical standard , .. Interfering devices , . Receiver radiation , ' , . Experimental radio services. Type acceptance of transmitters.. ' , . Radio wave propagation research . Laboratory. , . ' , , .. , " . Type approval of equipment , . Study of new systems and devices, ' . Radio propagation measurements, . DevelopmenL and calibration of field equipment. FREQUENCY ALLOCATION AND USE. National frequency allocations . Joint OCDM-FCC long-range allocation planning. " . Possible reallocation of VHF Government frequencies . General speetrllIll studies . Other nati.onal frequency allocation aetiom. and problems.. '" International frequency allocaLiQns. International Radio Conference, Geneva 1959... Other international conferences . International frequency coordination . International interference and infractions. Internalional frequency usage data . National frequency coordination . National frequency lists . Statistics . Frequency conrdination actions . Frequency assignments processed.. APPENDiX . Electrical communication milestones . Early communication . Communication developments. Wire telegraph . Ocean cable telegraph. Wire telephone. Radiotelegraph.... :Page 143 143 144 145 146 146 146 146 143 143 143 143 149 149 150 152 152 153 154 156 156 157 157 157 158 158 158 158 159 159 161 16l 162 162 163 164 164 165 l66 J66 166 167 167 167 167 168 169 170 172 TABLE OF CONTENTS APPENDIX-Conlinued Electrical communication mileetones--Continued Radiotelephone . Broadcast '" , AM broadcast , . FM broadcast . TV hroadcast . Color TV , . Educational broadcast . Miscellaneous radio services . FCC log highlights . Page 174 175 175 175 176 176 177 177 178 Anniversary Report Summary 1934 AND 1959 The 25th year of the Federal Communications Commission was marked by continued advances in and utilization of electronic com munication which served to reemphasize the U.S. world leadership in telecommunication. In the FCC's quarter century, these major events have transpired: Radio authorizations have practically multiplied by that number of years-from slightly more than 100,000 at the close of the Commis. sion's first year tonearly 2.5 million today. Radio stations of all kinds have increased from 51,000 to more than 507,000 and currently represent the use of about 1.8 million trans mitters. From 600 stations (all AM) in 1934, broadcast authorizations col. lectively today exceed 10,000, of which 3,500 are AM and over 970 and 930 are TVand FM, respectively. The number of broadcast receivers has soared from 18 1 12 million to more than 200 million (150 million aural and 50 million TV). Almost two-thirds of the world's total are in the United States. This country now has more sets than people and almost three times as many sets as it has automobiles. Amateur radio operator authorizations have climbed from about 36,000 to around 188,000. Commercial radio operator permits have skyrocketed from some 21,000 to more than 1.7 million. Twenty-five years ago there was insufficient spectrum space to ac commodate all who wauted to use radio. Personalized use of radiO, impossible until 1949 except by amateurs, is presently reflected in more than 50,000 citizens radio operations. The past 25 years have witnessed the automation and expansion of common carrier facilities, including the installation of coaxial cable and microwave radio adjuncts, and oversea telephony by cable as well as by radio. The telephone and telegraph industries have kept pace with electronic progress in services, equipment, andoperatin~ techniques. : 1 2 REPORT OF THE FEDERAL COMMUNICATIONS COM.'I1ISSION Tjle United States has more than half of the world's telephones now approaching 70 million as compared with 17 million in 1934. More than 80 perccnt of today's total are in the Bell System. Domes tic telephone conversations have increased franl 73 million to 250 mil lion daily. Dial operation has become. general. Telephone service now extends to planes as well as ships and motor vehicles. The Bell System operates a national coaxial cable and micro\vave netwqrk which, amongothe~things, relays TV programs. The first transatlantic telephone cable is in its third year of operation and qnother one has beenopencd. Telephone cables also extend to the new States of Alaska and IIawaii. Others are in prospect. There is radio-telephone service to 125 foreign countries contrasted to 60 in 1934. Since then international telephone conversations have increased from 16,500 to 2.7 million annnally. Since the creation of the FCC, two competitive domestic wire tele graph companies (Postal and ·Western Union) have merged. The now single national telegraph system handles about 123 million land linedomestic messages a year. '''estern Union is extending the Chi cago terminus of its present microwave systenl to St. Louis and ICansas City. Its facsimile, direct tie-line, customer-to-customer, and leased private wire services have seen marked expansion. The volume of international telegraph traffic of all carriers amounts to about 22 million messages a year compared to 14 million in 1934. Over-the-horizon microwave communication, to the inclusion of TV, is in operation between Florida and Cuba. vVorld vVar II experience demonstrated the importance of wire and radio communication to both military and civilian participation. As a result, these services and facilities form an integral part of today's national defense program. The CONELRAD system, established by the Commission in 1950 at the request of theDepartment of Defense, has since 1957 been put to incidental peacetime use in disseminating storm and flood warnings. Telecommunication has advanced a long way since 1934, making its biggest strides since World War II. Postwar development of new electronic devices and techniques has opened the door to additional uses of radio besides contributing to the expansion and efficiency of the older communication systems. Advent of the transistor has made possible more compact receiving and other equipment. Radar is now used on land as well as water. Coaxial cable is responsible for a multi. tude of closed-circuit TV operations. The usable radio spectrum has boon extended from 300 to 30,000 megacycles. This has provided elbow room for new services and more REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 3 space for existing services. Even so, radio users still suffer from "growing pains," and the Commission has had to give prime considera tion to the more essential services and shared use of the available fre quencies. The Commission is reviewing present and prospective usage throughout the entire radio spectrum. Mean,vhile, "channel splitting" and "single sideband" and "offset carrier" operation are making some additional frequencies available. That radio is no longer earthbound is evinced by the start of com munication with objects in outer space and a move for international agreement to provide and protect frequencies for this and other scientific developments. The·mushrooming of transmitters and the increasing use of elec tronic devices have brought added interference problems. From less than 3,800 cases in lV34, the number of interference complaints requir ing FCC field investigation ·now exceeds 24,000 a year, not counting routine cases handled by local and Tegional cooperating groups. Though there is still an acute "housing shortage" iIi popular parts of the spectrum, more than 65 different categories of services are able to utilize radio for a myriad of purposes. In addition to broadcast, common carrier, and individual use, these operations encompass public safety services by police, fire, and other local government entities; marine ship and shore facilities; aviation aircraft and ground com' munication; land transportation usage by railroads, taxicabs, buses, and trucks; and in conneCtion with manufacturing and other· business pursuits. Here is a comparison of current radio authorizations with those at theend of the FCC's first year: Station, Marlne._. • ._. . . _ Aviation _ Public safety . . . Industrlal • . . __ • _ Land transportatlon _ Amfl.teur-__~,, • _ Broadcast _ Common carrier~_"_.,, _ Other •• __ •__ 4 •~•• • • __" _ StatIon totaL•••__ •__~~_4~••_. _ Operator8 AIIl.ateur4_.4_4._~••4~••••__.~••__._.__ 44 ' CommerclaJ••_.~~~~_ Operator total- •__ •• 4_. __~_ Orand" totaL __ •••••__ • 4.__ ••__ • ._.__ 'June 30,1935 June 30, 195D Increase 2,157 84,94.78~700 678 77,682 77,004. 298 29,363 29,065 146 49,697 49,651 0 59,894 51l,BW 45,561 195.776 150,215 623 10.120 9,497 665 3.845 3,280 1,046 10,703 9,657 51,074 522,027 470,953 311,525 1188,000 151,475 121,000 1,705,903 1,684,903 57,525 1,893,903 1,836, 378 lOS, 599 2,415,930 2,307,331 I Estimated. 4 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Following are some highlights of the Commission's 1959 fiscal year: BROADCAST General The only broadcast service in 1934 was AM. Regnlar FM and TV service started in 1941. The result is that, as of June 30, 1959, there were more than 5,400 authorized broadcast stations (3,500 AM, 971 TV, and 934 FM), not counting about 4,700 remote pickup and other auxiliaries. Of these, 3,377 AM, 767 TV, and 776 FM stations held operating authorizations. Included were 224 noncommercial educational station authoriza tions-59 TV and 165 FM----Qf which 43 and 154, respectively, had authority to operate. The number of TV channel allocations for educational use has increased from 242 in 1952 to 259 today. Also included were 245 TV translator station authorizations, of which 158 held operating authority. As a result of staff study of TV network broadcasting and subse quent hearing, the Commission is engaged in proceedings concerning national spot sales, option time, and network program selection prac tices. Though directed at TV primarily, possible extension to con sider aural networking is involved. Televised programs showing candidates on news film clips caused Commission interpretations of the political broadcast laws and rules which prompted Congcess to adopt legislation exempting certain news progcams. Under Commission consideration are such general broadcast sub jects as "stereophonic" operation, revision of the broadcast applica tion form with respect to statement of progcam service, and curbing "payoffs" for dismissal of applications in hearing to effect mergers of competitors. TV The Commission is considering various plans to deal with the UHF-TV problem. Much depends upon whether additional VHF space can be obtained from the Government. As of July 6, 1959, there were 437 VHF and 75 UHF commercial TV stations operating in 267 markets. Almost half of the UHF permits issued since 1952 have been surrendered, and 92 of the 167 UHF stations which were in operation are now off the air. Only about a third of the operating UHF stations reported a profit. The Commission has proposed legislation to enable it to authorize VHF "booster" (repeater) stations under safeguards to prevent REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 5 interference. The numoor of present illegal booster operations IS estimated up to a thousand ormore. The Commission also requested legislation to give it authority over community antenna (CATV) systems (now estimated to number about 700) to the extent of requiring such closed-circnit systems to obtain the consent of the stations whose programs they pick up, and to carry programs of local TV stations. Though the Commission on March 24, 1959, announced that it would consider applications by TV stations to test subscription TV under limited conditions, none has yet been received. Translator stations, which rebroadcast TV programs on the higher UHF channels to small communities, were enabled to increase power to 100 watts. FM Increased interest in FM was attested by mounting applications for new stations (some of which were competitive and required hear ing) as well as by fewer station deletions. Only seven States are still without FMstations. One factor in this revised interest is the opportunity, afforded since 1955, for FM stations to obtain additional revenue through subsidi ary "functional music" programs to subscribers. The number of st.... tions so engaged totals 127. The Commission is considering possible additional multiplexing services by FM stations. A court ruled that the functional music rules are invalid insofar as they exclude such operation on a simplex basis. AM Commission determination is pending on questions involved in the clear channel and daytime skywave proceedings. It held that extended hours of operation for daytime stations is not feasible, but did make it possible for local channel AM stations to increase their daytime power from 250 watts to1 kilowatt. Senate ratification of the North American Regional Broadcasting Agreement of 1950 and a bilateral agreement with Mexico in 1957 has not yet materialized. Because of the AM application backlog, it was necessary for the Commission to establish a "cutoff" time after which new applications will not be considered withthose already on file. SAFETY AND SPECIAL There are more than 40 categories of safety and special radio serv ices, most of which did not exist 25 years ago or were then in the experimental stage. Over half a million licensees now operate more 62MS1---lS9---2 6, REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION than 1.7 million fixed, mobile, and portable transmitters in these services which operate in the air and on the water as well as on the gronnd. This represents a tenfold increase since 1934, having prac tically doubled in the past 5 years. Since no leveling in the demand for these facilities is foreseen for many years to come, the Commission is seeking more effective ways of utilizing the spectrum space available for these purposes as well as handling the incrcasing volume of applications. There was mounting interest in the four new radio services pro vided for local government, manufacturers, business and telephone maintenance. COMMON CARRIER Telephone The telcphone industry, compnsmg the Bell System and about 4,000 independent companies, together operate nearly 70 million tele phones, representing an industry investment of more than $24 bil lion, with annual gross revenues apprmlching$8 billion. About 94 percent of all Bell telephones and 80 percent of the inde pendent telephones are now dial operated. About 12 million sub scribers can dial nearby toll caUs and another 8 million can dial long distance. Bell System reported consolidated net income for calendar 1958 applicable to capital stock of the parent company, American Tele phone & Telegraph (A.T. & 1'.), totaled more than $952 million, an increase of 11.5 percent over 1957. At the close of the fiscal year the Commission initiated discussions with the Hell System which resulted in an agreement to reduce charges for interstate Iong-distance-message toll calls by about $50 million annually. Pending decision in its investigation of private linetelephone and telegraph rates, the Commission ordered a 15-percent reduction in A.T. & T. rates fQr private line telephone services to be effective in August 1958, and permitted interim increased rates for private line telegraph services to become effective in December 1958, representing an increase of 18 percent for, the telephone system and 15 percent for Western Union. H_ell still handles the major part of the private line telegraph business. ' The Hell System canceled its controversial tariff filing concerning the lease and maintenance of private !!JPbile communication systems following announcement of its intention to withdraw from this service. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 7 Telegraph 'Western Union's gross landline operating revenues for calendar 1958 totaled $240,729,000, a decline of $4.8 million from its previous high in 1957. Its systemwide net income, including ocean cables, amounted to $12,660,000 in 1958 after Federal income taxes as com pared with $14,194,000 for 1957. Private line telegraph services, its second major source of revenue, increased to $40.7 million, or more than $4.5 million from the year previous. Western Union has installed and leased more than 2,000 private wire systems representing about 3 million circnit-miles. One of these is the world's largest private wire system-a 250,OOO-mile network linking U.S. Air Force bases. Another 25,000-mile system serves 245 offices and plants of a business establislunent. About 43 million telegrams are sent each year over 36,000 "deskfax" (facsimile) machines used by customers. A 12,000-mile facsimile weather map network has been installed for the Air Force. "Telex," which permits customers to dial other customers directly for two-way telegraph communication, links New York with Chicago and 24 Canadian cities. Extension of this system to San Francisco has begun. In the fall of 1958, Western Union was permitted to increase rates for various interstate services by about $10 million a year to offset a previous increase in employee wages. In providing the only nationwide telegraph service, Western Union operates nearly 4% million miles of telegraph circuits, 21,200 tele graph offices and agencies, and some 56,000 direct teleprinter and "deskf::lx" connections to customers. Its eastern microwave network is being extended from Chicago to Kansas City. International Revenues of international telegraph carriers exceeded $77 million in calendar 1958, an increase of 0.6 percent over 1957. Oversea tele phone service revenues increased 21.6 percentto$26 million. The Commission ordered Western Union to present a plan for di vestment of its ocean cable operations which is required by law as a result of its merger with Postal in 1943. The Commission has endorsed, in· principle, legislation to permit merger {)f international telegraph carriers. Another transatlantic telephone'cable is operating, this time be tween Newfoundland and France. An earlier one connects Newfound land and England. 8 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION NATIONAL DEFENSE Besides augmenting the CONELRAD system to minimize the navi gational aid an attacking enemy might obtain from radio emissions, the Commission, with the cooperation of the U.S. Air Force and the U.S. Weather Bureau, has developed a system whereby broadcasters utilize CONELRAD alerts for weather warnings. The Commission continues to cooperate with military and civil agencies concerned with emergency communication planning, and has appointed national and State industry advisory groups to assist in this program. Also, a Commission unit of the National Defense Executive Reserve has been established to handle certain FCC prob h,ms in event of a national emergency. A Defense Steering Committee has been set up within the Com mission. Itis headed by Defense Commissioner Robert E. Lee. Much of the Commission's defense activity is classified and therefore cannot be included in this report. LITIGATION AND LEGISLATION Never before has so much of the Commission's time and attention been required by litigation and legislative matters. This is manifest in the man-hours which must be devoted to these subjects at the ex pense of other pressing business. Court actions have necessitated new and additional time-consuming procedures, and congressional consid erations have resulted in an unprecedented number of comments on proposed legislation, personal appearances before various committees and subcommittees, and special studies and reports to answer specific questions from congressional groups. During the fiscal year the Commission was party to or participated in 122 cases in the Federal courts. Congress was considering many proposals to amend the Communications Act, including 10 submitted by the Commission. FREQUeNCY ALLOCATIONS Besides its Own proceedings to review present and prospective use of the radio spectrum now available for its assignments, the Com mission and the Government are engaged in joint long-range planning concerning Government as well as civilian allocations. In the international allocations field, major interest is directed to the 1959 conference which is scheduled to revise the world's radio reg ulations and consider extending the radio spectrum to 40,000 mega cycles. Since this is the first such session since 1941, high importance attaches to its consideration of developments of subse quent years, including space communication. Throngh public pro ceedings the Commission, under Department of State auspices, helped REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 9 to prepare the U.S. proposals for Geneva. FCC Commissioner T. A. M. Craven is Chairman of the U.S. delegation at the radio administrative session and FCC Commissioner Rosel H. Hyde is Vice Chairman of the U.S. delegation at the plenipotentiary session. OTHER INTERNATIONAL CONFERENCES During the year the Commission prepared for 26 other interna tional conferences to which it furnished 4 delegation chairmen, 3 vice chairmen, and 42 other representatives. Chairman John C. Doerfel' headed the U.S. delegation to the International Telephone and Tele graph Consultative Committee subcommittee meeting in Tokyo in May 1959. FIELD ENGINEERING AND MONITORING Interference and enforcement problems continued to tax the FCC's field engineering force. In the early years of radio, interference came mainly from communication systems; today it is augmented by many electronic devices used by industry as well as in the home. The volume of complaints is such that the Commission must depend upon some 560 cooperative groups to handle run-of-the-mill cases at the local level. During the year FCC field engineers uncovered 329 unlicensed radio operations, including an additional 215 illegal TV boosters. While able to give priority to furnishing monitoring bearings to ships and planes in distress, the Commission had to curtail inspec tion of some radio stations. It conducted examinations for radio operator licenses, obtained and analyzed technical data for the Com mission, and carried on certain contractual work for other Federal agencies. Another important task, performed in Washington, is processing applications for high antennas involving aeronautical safety consid erations. Eighty-one TV towers of a thousand feet or higher are now in operation, the tallest being the 1,610-foot shaft of KSWS-TV, Roswell, N. Mex., but higher ones are under construction. RESEARCH AND LABORATORY The Commission's Washington engineering office, assisted by a lab oratory at Laurel, Md., conducted various technical projects which covered, among other subjects, study of TV matters, stereophonic broadcasting, radio wave propagation, patent aspects of engineering standards, noncommunication systems, and interfering devices. Type approving or type accepting of certain equipment continued as a guard against interference before it starts. The experimental radio 10 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION services afforded industry and others opportunity to engage in basic research and to develop and test new equipment and techniques. COMMISSION The Commission's 1934 budget was under $2 million; in 1959, for the first time, it exceeded $9 million. However, its personnel during the interval has only slightly more than doubled-from about 500 at the close of its first year to not quite 1,300 in 1959. Indeed, its present staff is smaller than for 10 previous years. About one-fourth of its employees are engaged in field engineering work. Less than 10,000 applications of all kinds were received by the Commission in its first year of operation. The annual figure now approaches 600,000, not counting legal, tariff, and other filings. There were no changes in the Commission membership during the year, Commissioner Rosel H. Hyde being reappointed. History of Regulation EARLY WIRE REGULATION Though several earlier acts of Congress dealt with specific tele graph matters, Federal regulation of interstate electrical communica tion may be said to date from passage of the Post Roads Act in 1866. It anthorized the Postmaster General to annually fix rates for Government telegrams. In 1887, Congress gave the Interstate Commerce Commission au thority to require telegraph companies to interconnect their lines for more extended public service. Government regulation of the accounting practices of wire com munication carriers began with the Mann-Elkins Act of 1910. That act authorized the Interstate Commerce Commission to establish uni form systems of accounts for telegraph and telephone carriers, to make valuation studies of certain wire telegraph companies, and to be informed of extensions and improvements in order to keep these valuatiou studies up to date. In this connection, telephoue and tele graph carriers were required to file monthly and annual financial reports with the Interstate Commerce Commission. EARLY RADIO REGULATION The Mann-Elkins Act also gave certain regulatory powers over radiotelegraph carriers to the Interstate Commerce Commission. This statute, in effect, extended provisions of the Interstate Commerce Act of 1887 to covel' wireless telegraph. Meanwhile, the usefulness of radiotelegraphy in protecting life and property at sea became so apparent that a preliminary inter national wireless conference was held at Berlin in 1903 to consider a common distress call for ships and to provide for wireless ·com munication between ships and shore as well as between ships. WIRELESS SHIP ACT OF 1910 The first legislation dealing with marine radio was approved by Congress in 1910. Known as the Wireless Ship Act, it required in stallation of wireless apparatus and operators on large seagoing passenger vessels. Enforcement of this act was made the responsibil ity of the Secretary of Commerce and Labor, who at that time ad ministered the domestic maritime navigation laws. 11 12 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION In 1912, the Third Radio Telegraph Conference in London ap proved regulations to secure uniformity in practices of radiotele graph services. The enforcement of these regulations, as far as the United States was concerned, was delegated to the Secretary of Commerce and Labor. Later that same year, Congress amended the Wireless Ship Act of 1910 to cover large cargo vessels; also to require an auxiliary source of power supply on ships, an adequate means of communication be tween the radio room and bridge, and two or more skilled radio operators on certain passenger vessels. RADIO ACT OF 19'12 Regulations for further uniformity of wireless communication practices were adopted by the International Radio Telegraph Con ference at London in 1912. To carry out its obligations under that treaty, the United States enacted the Radio Act of 1912. This was the first law for the domestic control of radio communication in general. The Radio Act of 1912 embodied regulations concerning the char acter of emissions, transmission of distress calls, set aside certain frequencies for Government use, and placed licensing of wireless st. tions and operators under the Secretary of Commerce and Labor. Licensing began that year. WORLD WAR I PI!RIOD During the period from August 1, 1918, to July 31, 1919, the Fed eral Government exercised, control of telephone and telegraph com munication as a war measure. In 1920, Congress authorized the Secretary of the Navy to use Government-operated radio stations for the transmission of press and private commercial messages between ships and between ships and shore, at reasonable rates subject to review by the Interstate Com merce Commission. By the Transportation Act of 1920, the Interstate Commerce Com mission was directed to prescribe the depreciation rates and charges of telephone and telegraph companies. Also, in 1920, the Interstate Commerce Act was amended to permit consolidations of telephone companies when approved by the Interstate Commerce Commission. An Executive order, issued in 1921 pursuant to the Cable Landing License Act, authorized the Department of State to receive all appli cations to land or operate ocean cables, and to advise the President with respect to the granting or revocation of such licenses. Prior to that time, the Presidents had, since 1869, exercised this control under their broad executive powers. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 13 'RADIO ACT OF 1"y by radio, and to the licensing and regu lating of all radio stations * * *." This authority extends to the territories and possessions of the United States, but not to the Canal Zone. Radio communication fa cilities operated hy the Federal Government are not under Commis sion jurisdiction. In general, the act limits licensing by the Commission to citizens of the United States. It further denies the license privilege to corpora tions in which any officer 01' director is an alien, or of which more than one-fifth of the capital stock is owned or controlled by foreign interests. The statute consists of six major sections or "titles": Title I defines the purposes of the act, the terms and duties of the commissioners, and confersgeneral powers. Title II contains provisions applicable to common carriers that are subjecttoCommission regulation. Title III relates to radio and is divided into three parts. Part I deals with radio licensing and regulation in general. Part II pertains to use of radio equipment and radio opera tors on board ship. Part III concerns radio installations on vessels carrying passengers for hire. Title IV spells out procedural and administrative pro visions. Title V prescribes penalties and forfeitures for violators. Title VI prohibits unauthorized interception and publica tion of communications by wire 01' radio and gives the Presi dent certain powers to deal with communication matters in event of war or other national emergency. Extensive revisions of the act-particularly in 1952-made impor tant changes in the Commission's organization and its procedures. FEDERAL COMMUNICATIONS COMMISSION Organization Chart as of June 30, 1959 I THE COMMISSION I I I CHAIRMAN I OFfiCE OF ADMINiSTRATION I • •Budget and Fiscal Division Organization and Methods Division OFfiCE OF OFFICE OF OFFICE OF Personnel DivisIon OPINIONS AND REPORTS AND HEARING Administrative Services Division REVIEW INfORMATION EXAMINERS i I i OFFICIO' OFFICI! OF OFFICE OF CHIEF ENGINEER GENERAL COUNSEL THE SECReTARY Frequency Allocation and Litigation Division Dockets Division Treaty DiYision Legislation Division Minute Division Technical Research Regulatory Division Tecbnlcal Assistance Division DivisIon Administrative Law International Telecommunications Lllborat0-Efi.Division and Settlements Division CON RAD Treaties DtvhlioD Library Division Mall and FUea Division • I I • FIELD ENGINEERING COMMON CARRIER SAfETY AND SPECIAL BROADCAST BUREAU AND MONITORING BUREAU RADIO SERVICES BUREAU BUREAU Broadcast FaeUltielt International Division -~-- DivIsion Field Operating Divbdon Telegraph Division Aviation Division Renewal and Transfer Division En l ineerlng Division Telephone Division Industrial Division Economics Division llspectloD and Domestic Radio FacUlties Land Transportation Division Rule!> and Standards Examination DivisIon Division Marine DiVIsion Division MonItoring Division Office of Accounting Systems Public Safety and Hearing Division License Branch Amateur DIvIsIon License Division om~of Field Cool'dinator Law, Enforcement and Office of Network StUdy Procedures Office Commission COMMISSIONERS The Commission is composed of seven Commissioners appointed by the President with the advice and consent of the Senate. One of the Commissioners is designated ItS Chairman by the President to serve at the latter's pleasure. The Chairman is the Commission's chief executive officer and is responsible for the general administration of its internal affairs. The normal term of a Commissioner is 7 years, except in filling an unexpired term. The terms are staggered so that only one terminates in a year. Not more than four members of the Commission can be members of the same political party. Commissioners cannot engage in private business while in office, nor can they have fin>tncial interest in any business which they regnlate. The Commission started to function on July 11, 1934. Six days later it organized into three divisions--Broadcast, Telegraph, >tnd Telephone--with two different Commissioners, plus the Chairman, heading each division. However, because of administrative difficulties and the need for unified control by the Commission ItS a body, this divisional organization WItS abolished as of October 13, 1937. AlI policy determinations are made by the Commission ItS a whole. The Commissioners function as a body, with delegations of responsi bility to individual Commissiouers or committees of Commissioners, and to staff units. Examples are a designated Defense Commissioner, Telephone and Telegraph Committees, >tnd assignments of individual Commissioners and staff members ItS members of or in liaison with various outside agencies and other groups (see list elsewhere in this chapter). Commission practices conform to the Communications Act of 1934, ItS amended, the Administrative Procedure Act, and other applicable laws. The Communications Act requires the Cummission to meet at least {)nce a month. However, the volume of its work necessitates regular meetings each week (with the exception of August), als<> special meet ings and a monthly workload review meeting. These are in addition to the Commissioners sitting en banc in many hearings and oral argu ments. (In any case in which an examiner has made an initial deci 'sion, the Commissioners have to hear oral argument on the request of any party to the proceeding.) 17 18 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Pursuant to a 1952 amendment to the act, the Commission makes a special monthly report to Congress on the backlog of pending applica tions and hearing cases. Membership of the Commission remained unchanged during the year. On April 17, 1959, the President nominated Commissioner Rosel H. Hyde for another term, and the latter was confirmed on June 4. Following is a list of past and present members of the Federal Com munications Commission; their terms of service as Commissioners and Chairmen; and their political affiliations and States of legal residence when appointed: Oommls8iontr, Politics State Term8 of8ero£r:e *Eugcne O. Sykes____~___ Dem____ ..\tliss____ July 11, I934-Apr. 5, 1939 Chairman__________ -------- -------- July 11,1934-Mar. 8, 1935 *Thad H. Browll_________ Rep____ Ohio____ July 11,1934-June 30, 1940 Paul A. VValker _____~___ Dem____ Okla____ July 11, 1934-June 30, 1953 Acting Chairman____ -------- -------- Kov. 3,1947-Dec. 28, 1947 Chairmau __________ -------- -------- Feb. 28,1952-Apr. 17,1953 Norman S. Case_________ Rep ____ R.L ____ July 11, 1934-June 30, 1945 Irvin Stewart _______~___ Dem____ Tex_____ July 11,1934-June 30,1937 *George Henry Payne_____ Rep____ N.L ___ July 11, 1934-June 30, 194:1 *Hampson Gary__________ Dem____ Tex_____ July 11,1934-Jan. 1, 1935 *Anning S. P.ralL_________ Dem____ N.Y____ Jan. 17, 1935--July 23, 1937 Chairman__________ -------- -------- Mar. 9, 1935--July 23, 1937 T. A. M. Craven________ Dem____ D.C ____ Aug. 25, 1937-.June 30, 1944 *Frank R. McNinch______ Dem_. __ X.C____ Oct-. 1,1937-Aug. 31, 1939 Chairman__________ -------- -------- Oct. 1,1937-Aug. 31, 1939 *Frederick 1. Thoro-pson___ Dem____ Ala_____ Apr.I;~,1939--June 30, 1941 James Lawrence Fly_____ Dem____ Tcx_____ Sept. 1,1939--Nov. 13, 1944 Chairman ______~___ -------- -------- Sept-. 1, 1939-Nov. 13, ]944 *Ray C. Wakefield _______ Rep____ CaIiL___ Mar. 22, 1941-June 30, 1947 Clifford J. Durf- ________ Dem____ Al:L ____ ?\ov. 1,1941-June 30,1948 Ewell K. Jett___________ ImL ____ :\thL ____ Feb. 15, 1944-Dec. 31,1947 Interim Chairman___ -------- -------- :K"ov. 16,1944-Dec. 20, 1944 PaulA.. Porter__________ DeIU ____ Ky _____ Dec. 21, 194·1--Feb. 25, 1946 Chairman_______~__ -------- -------- Dec. 21, 1944-Feb. 25,1946 Charles R. Denny_______ Dem____ D.C ____ Mar. 30, 1945-0ct. 31, 1947 Acting Chairmau____ -------- -------- Feb. 26, 1946-Dee. 3, 1946 Chairman______~___ -------- Dec. 4, 1946-0ct. 31, 1947 *William H. Wills________ Rep____ Vt______ July 23, 1945-Mar. 6, 1946 Rosel H. Hyde__________ Rep____ Idaho___ Apr. 17,1946- Chairmau__________ -------- -------- Apr. 18,1953-Apr. 18,1954 Acting Chairman____ -------- -------- Apr. 19,1954-0et. 3,1954 Edward M. Webster_____ Ind_____ D.C____ Apr. 10, 1947-June 30, 1956 Robert F. Jooes_________ Rep____ Ohio____ Sept. 5, 1947-Sept. 19, 1952 *VVayne Coy_____________ Dem____ Ind_____ Dec. 29, 1947-Feb. 21, 1952 Chairman__________ -------- -------- Dec. 29, 1947-Feb. 21, 1952 George.E. Sterling_______ Rep____ Maine __ Jan. 2, I 948-Sept. 30, 1954 Frieda B. Henno('k __~_ Dem____ N.Y____ July 6, 1948-June 3D, 1955 ·Deceased. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 19 CommiB,iorurB Politic. Stat, TermB of service Robert T. Bartley_______ Dem____ Tex_____ Mar. 6, 1952- Eugene H. MerrilL ______ Dem____ Utah____ Oct. 6,1952-Apr. 14,1953 John C. Doerfer_________ Rep____ Wis_____ Apr. 15,1953- ChairmaIl__________ -------- -------- July 1, 1957- Robert E. Lee___________ Rep____ IlL _____ Oct. 6,1953- George C. McConnaughey_ Rep____ Ohio____ Oct. 4,1954-June 30, 1957 Chairman__________ -------- -------- Oct. 4, 1954-June 30, 1957 Richard A. Mack________ Dem____ Fla_____ July 7,1955-Mar. 3, 1958 T. A. M. Craveu ________ Dem____ Va______ July 2, 1956-- Frederick \V. Ford_______ Rcp____ W. Va__ Aug. 29, 1957- John S. Or088___________ Dem____ Ala_____ May 23, 1958- It is interesting to note that two present members of the FCC were on the staff of the original Commission. Commissioner Rosel H. Hyde transferred from the Federal Radio Commission as an attorney, later became the FCC's General Counsel and served a term as Chair man. Commissioner Robert T. Bartley was Director of the Commis sion's original Telegraph Division. Twice an FCC Commissioner, T. A. M. Craven, who had served on the staff of the old FRC, started with the FCC in 1935 as its Chief Engineer. Commissioner Fred erick W. Ford joined the FCC in 1947 and was the first Chief of the Broadcast Bureau's Hearing Division. STAFF ORGANIZATION Until April 3, 1950, the Commission staff functioned with four bureaus-Engineering, Accounting, Law, and Secretary-with the first three named bureaus sharing responsibility for administering common carrier, broadcast and nonbroadcast matters. On that date there was initiated a reorganization of the staff to operate on func tional instead of professional lines. This resulted in establishing the present four self-contained operating bureaus-Common Carrier, Broadcast, Safety and Special Radio Services, and Field Engineer ing and Monitoring. These are supplemented by seven offices-Sec retary, Administration, Chief Engineer, General Counsel, Hearing Examiners, Opinions and Review, and Reports and Information. The only major change in staff organization during the current year was reorg,mization of the Office of the General Counsel, an nounced March 20, 1959, into four divisions-Litigation, Legislation, Rules and Enforcement, and Administrative Laws and Treaties-in place of the previous two divisions (Litigation and Legislation, Trea ties and Rules) . The present organization chart appears as a separate page of this chapter. 20 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION AUTOMATIC DATA-PROCESSING STUDY With th.. cooperation of the National Bureau of Standards, the Commission is studying the feasibility of using electronic equipment, commonly known as ADPS (automatic data-processing systems), to expedite and increase efficiency in handling its workload. PERSONNEL At the end of the fiscal year the Commission had 1,281 employees on its rolls. This figure included 53 employees who were hired for the summer months only, and 91 employees who were carried on the Commission's rolls but were performing work for other agencies on a reimbursable basis. The actual average employment for the entire year for staff engaged in regular Commission activities was 1,129.4. This represents an increase of 31.3 over 1958. Distribution by organi zation units of the average employment for the year was as follows: Washington Field Total 47.6 ------------ 41.6 26.8 ------------ 26.8 26.1 1.0 27.1 '.0 ------------ '.0 81. 1 ------------ 81.1 57.0 ---.-------- 57.0 "'.3 -------13:0· 29.3 60.8 73.8 93.3 26.0 119.3 134.2 ------------ 134.2 181. 7 293:5- 181. 7 54.0 347.5 795.9 333.5 1,129.4 Commissioners' offices • _ Office of Opinions and Review _ g~:;:g~~=~rt.~~n~T~~~-atlon-_~~~=============================Office or Administration. __ .~__ Office of Secretary _ Office of General CounseL~_ Office of Chief EnRineer--r'- _ Common Carrier Bureau . _ Safety and Special Radio Services Bureau _ Broadcast Bureau _ Field Engineering and MOnitoring Bureau I__--==-.:-I__=="-I__..,-:~ TotaL.~~_.•__~__~_ Biographies of employees added during the year, also names of those leaving during that period, are being reported to Congress separately pursuant to section 4(k) (3) of the Communications Act, as amended in 19502. Total FCC personnel at the close of each previous fiscal year follows: 1935________ 503 1936________ 739 1937________ 610 1938________ 623 1939________ 616 1940________ 629 1941 1,414 1942 2,041 1943 1,942 1944 1,524 1945 1,362 1946 1,291 1947 1,329 1948 1,380 1949 1,340 1950 1,286 1951 1,205 1952 1,138 1953 1,070 1954 I, 146 1955 1,094 1956________ I, 116 1957 1,197 1958 1,238 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 21 A current and continning Commission personnel problem is to re cruit qualified engineers and stenographers (especially typists). This is due to the competition by industry and other business for skilled workers in those categories. APPROPRIATIONS AND EXPENDITURES For fiscal 1959 the Commission received appropriations totaling $9,781,100. This was an increase of $1,046,745 over the previous year. However, $446,550 of this amount was required to cover in creased salary rates that prevailed for only a portion of fiscal 1958. Personal services accounted for about 83 percent of the 1959 budget. A breakdown follows: Personal services $8,140,420 Travel 98,250 Transportation of tbings ..-___ 17,001 Communication services_________________________________________ 215,277 Rents and utilities______________________________________________ 68,269 Printing and reprodnction_______________________________________ 69,957 Other contractual services______________________________________ 203,909 Supplies and materialIL_________________________________________ 140, 086 Equipment 184,410 Land and structures____________________________________________ 114,734 Contribution to Civil Service Retirement Fund___________________ 509,055 Awards and indemnities_________________________________________ 6.283 Taxes and assessments__________________________________________ 3,248 Total obligations__________________________________________ 9,770, 899 1959 funds expended in 1958____________________________________1~176 195L_c $6, 625, 000 1952______ 6,585, 550 1953 6,408,460 1954 7,400,000 1955 6,911,769 1956 7,323,000 1957 7,828,000 1958 8,734,355 1343 $7,777. 135 1944 7,884,914 1345 6,312,343 1346 5,489,900 1347 6,236,900 1348 6,240,000 1349______~717, 000 1950 6,729,345 Total 9,781,100 The sources of these funds and the authority for expenditures thereunder are Public Laws 766 and 844, 85th Congress, and Public Law 30, 86th Congress. Expenditure details and their justification are set forth at length in the FCC budget presentation to Congress. Appropriations to the Commission in past years are shown for the fiscal years stated : 1935$1,89~885 1936 1,925,000 1937 1,997,000 1938 1,649,000 1939 1,745,000 1940 1,838,175 1341 4,726,340 1942 5,655,924 :525681----59-3 22 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION DOCKETS Broadcasting still accounts for the majority of docket cases. The following docket statistics for fiscal 1959 refer to individual applica tions in hearing status: Pending Desig- Disposed Disposed Pending June 30, nated fOf of with- of,follow- June 30, J958 hearing out hear- ing hear· 195Jl ln, Jng AM broadcast-•. __________________________ J75 24J) J03 85 2ZI TV broadcasL _________ ---------------- 93 51 20 40 84 FM broadcasL____________________________ J8 24 8 10 24 Other broadcast. ________________________•. 14 8 3 2 J7 Total broadcast. ____________________ 300 323 J34 137 362 Safety-and speciaL _________ 32 >l 35 20 Tl Common carrier_. _________________________ 30 4J 18 6 47 Joint and generaL _________________________ 60 22 23 , 54 Total nonbroadcast.. J22 JJO 16 37 J28 Petitions, etc ----------------------- 43 J3 3(1 19 Grand totaL_ ----...-.-- 465 I 455 246 175 '99 During the year the Commission issued 134 initial decisions cover ing 176 applications. Of these, D9 concerned 140 broadcast applica tions. The broadcast hearing workload is a major Commission concern. It is due mainly to competitive and procedural considerations. An application which cannot be granted mnst be afforded oppor tunity for a hearing. However, before being designated for hearing, such an applicant (and other parties of interest) mUst be advised by letter as to the reason and given a month in which to reply. Each additional competing application means a new round of letters. Also, the law requires an application granted without hearing to be set for evidentiary hearing or oral argument if timely and properly protested.. The Commission must give priority consideration to such protests. Further, the courts have recognized nonlicensees as pro testnnL", even though they may not be in the communications business. This has opened the door to protestants in other lines who allege possible economic injury. Petitions and motions, together with the oppositions and replies they engender, likewise add to the adjudicatory burden. They en compass requests to enlarge or change hearing issues, alter applica tion proposals, and appeals from procedural rulings and decisions. These are many, often repetitious, and delay finality. Another obstacle to expeditious functioning is a 1952 amendment to the Communications Act which bars Commissioners from consult ingI~"'CCst,aff experts on legal and technical considerations in adjudi catory proceedings. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 23 Remedial action by Congress on the "protest" and "separation of functions" provisions and changes in the Commission's rules together with increased personnel seem to offer the only practical solution. AUTHORIZATIONS The Commission closed its fiscal year with more than 2,400,000 radio authorizations outstanding, an increase of nearly 284,000 sincEl 1958. Comparative fi/{Ures for those years follow: 01"", Broadcastservices~•• +._. • _ Safety and specialsen·ices~• •• "~_ Common carrier scrviees. . . ._ ~~~~:~~(;aO&1tion advanced by the Commission as IImieull curill4l W88 affirmed 10 Farm,r, Educational Union v. WDAY.lnc., - U.S. -,3 L. Ed. 2d 1407. I The court retained Jurisdiction In3 adjudicatory cases remanded to the Commission for spedaI bearings. ! The court also retained jurisdiction in 2 appeals !rom rulemaking proceedings remanded to the Com mlmoD lor special hearings. LEGISLATION Enacted Laws During the 1st session of the 86th Congress, two measures were enacted which directly affected the activities of the Commission: Public Law 86--8, approved April 3, 1959, provided that certain communication activities at the IX Plenary Assembly of the Inter national Radio Consultative Committee, held in the United States in 1959, should not be construed to be prohibited by the Communications Act or any other law. Public Law 86--75, approved June 30, 1959, amended, among others, section 4,251 of the Internal Revenue Code of 1954 (12 U.S.C. 4251), to provide for termination of the tax on general telephone service, effective July 1, 1960. FCC Legislative Program The Commission submitted to the 86th Congress 10 proposals to amend the Communications Act which were introduced and included: An amendment to sections 3 and 325 (a) and a proposed new sec tion 330, which would impose certain requirements on community antenna television (CATV) systems. The proposal would define .the CATV systems covered therein; would require them to obtain the consent of the originating station for the redistribution to CATV subscribers of programs broadcast by such originating stations; and would require CATV systems to carry the programs of TV stations assigned to communities in which the CATV services operate (S. 1801, H.R. 6748). Insofar as CATV systems distribute programs broadcast by TV stations located elsewhere, they perform a function REl'ORT OF THE FEDERAL COMMUNICATIONS COMMISSION 33 basically similar to that performed by TV "repeater" stations. "Repeater" stations, which transmit signals by radio, come directly within the provision of section 325(a) of the Communications Act, which imposes the statutory requirement that a station rebroadcast ing programs of another broadcast station first obtain the consent of the originating station. The Commission believes that it would be appropriate and desirable that Congress impose the same require ment on CATV systems. This proposal is also intended to afford TV stations an improved opportunity to maintain their services despite the competition for local audiences offered by local CATV systems. An amendment to section 4(b), which would repeal the section of the Communications Act which permits the Commissioners to receive an honorarium for the presentation or delivery of publications or letters (S. 1735). A 1952 amendment to the act relaxed a prohibi tion against Commissioners engaging in any other business, voca tion, profession, or employment by providing that this prohibition should not apply to the presentation or delivery of publications or papers for which a reasonable honorarium or compensation may be accepted. The Commission feels that the reasons which led to the adoption of this exemption are outweighed by the ambiguities as to its extent and coverage and, accordingly, recommended its repeal. An amendment to section 5(c), to redefine the duties and functions of the Commission's review staff (S. 1738, R.ll. 657l\). Its purpose is to afford the Commission greater discretion in the utilization of the review staff provided for by that section. The principal advan tage ofthe amendment would be to expedite the disposition of adju dicatory cases by permitting the professional staff of Opinions and Review to assist the Commission more fully than at present on those matters which do not involve final disposition, thus allowing the Commissioners to concentrate their attention on the important questions of policy, law, and fact coming before them. An amendment to section 202(b), to expand the Commission's authority to regulate charges and services of common carriers for the use of microwave and other point-to-point radio circuits (use of wires only is now provided) in chain broadcasting or incidental to radio communication of any kind (S. 1740, R.ll. 6571). This was recommended because of the increasing use of such radio facilities interchangeably with wire service in providing network service and control circuits furnished by common carriers to broadcasters and other radio users. It is further necessary and desirable because such amendment. will give a. clear statutory. direction to.•the.C~I\. -<)f its responsibility in this field. 34 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION An amendment to sections 219, 308, and 319, to eliminate the requirement of an oath or affirmation ou certain documents filed with the Commission (S. 1736, H.R. 6127). This requirement imposes a burden on the public, and also on the Commission in instances where the applicant omits the required oath or affirmation. In such cases the workload of the Commission is increased to the extent nec essary to return reports or application forms for the required veri fication. This slows up consideration by the Commission of the matters involved and the processing of applications. Inconvenience and delay to the public result. Title 18, section 1001 of the United States Code, now provides that whoever makes any false or fraudu lent statements or representations concerning any matter within the jurisdiction of any department or agency of the United States shall be punished by a fine of not more than $10,000 or imprisoned for not more than 5 years, or both. In addition, the Communications Act provides in section 312 (a) that a station license or construction per mit may be revoked for false statements knowingly made in an appli cation or in any statement of fact which may be required under section 308. An amendment to section 309 (b), to eliminate the requirement for a prehearing notice to the applicant and known parties in inter est before an application is designated for hearing (S. 1733, H.B. 6572). The purpose of the notice is to afford the applicant an oppor tunity to corr-ect deficiencies in his application and thus avoid the necessity for a hearing. Rarely does the response to the section 309 (b) notice obviate the necessity for a hearing and, in view of the impact of the notice requirement upon the processing of appli cations, the Commission urged that the requirement for a prehearing notice be eliminated entirely. In most cases, the applicant knows, or has the means to know, the nature of the objections to his appli cation, so that a 309 (b) notice serves no useful purpose. Inasmuch as section 309 (b) notices are now required in more than 80 percent of the AM broadcast applications, the impact upon the Commission's workload is apparent. The entire protest procedure provided for by section 309 of the Communications Act (47 U.S.C. 309) has been under study by the Commission and the Federal Communications Bar Association. At their request, bills to amend revised section 309 were introduced in the 86th Congress (S. 1898 and H.R. 7017). The Commission has wo.rkerl with the association and there is Inutualag-reement on modi fications of the Commission's proposals, which modifications are reflected in S. 1898 as passed by the Senate on August 19, 19,,9. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 35 An amendment to section 318, to remove the explicit requirement that transmitting equipment of broadcast stations be operated by license operators (S. 1741, R.ll. 6471). In recent years the art of transmitting has advanced tremendously and the Commission believes that it shonld have greater statutory latitude as to the requirements for operators of broadcast transmitting equipment. For instance, at present there may be an inference in section 318 that the operator be in personal attendance, whereas in some situations the Commis sionbelieves that it is enough for the operator to tnrn the equipment on, have it operated under his general control but not be in personal attendance. This situation is particularly true of transmitters engaged solely in rebroadcasting. An amendment to section 319(d), to permit the Commission to grant licenses to TV installations engaged solely in rebroadcasting signals if they were constructed on or before January 1, 1959, and if the Commission finds that the public interest, convenience, and ne. cessity would be served thereby (S. 1739, R.ll. 6471). The Commis sion has been endeavoring to work out a satisfactory plan for authoriz ing TV service to isolated areas. In the meantime some commnnities have devised their own systems. Under the Communications Act, however, the Commission is prohibited from licensing facilities con structed before the Commission granted a construction permit. An amendment to section 409 (c) (2), which would prohibit any per son (not only those who have participated in the presentations or preparation for presentation in any case of adjudication which has been designated for a hearing by the Commission) from directly or indirectly making any presentation respecting such case (other Pl"O visions of section 409(c) (2) to remain unchanged) (S.1734). The objective is to clarify the present section 409(c) (2) as it does not contain an explicit statutory prohibition against any other person, not identified therein, making a presentation to an examiner or a Commis sioner in such a case after it has been designated for a hearing; nor is there a specific statutory requirement that any such person shall give notice of his presentation so as to afford an opportunity for all parties in the case to participate. An amendment to title V by amending section 504 (b) and adding a new section 508, to authorize the imposition of forfei tures for vio lation of certain of the rules and regulations of the Commission.in the common carrier and safety and special fields (S. 1737, R.ll. 6574). Its purpose is to give the Commission authority to impose fines for violations by radio stations in these fields. The need for this legis btion is emphasized by the rapid and phenomenal expansion in the non-broadcast radio service. The Commission has found that its 36 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION existing sanctions are inadequate to handle the situation. Present sanctions, such as criminal penalties, revocation of licenses, and issu ance of cease and desist orders, are too drastic for the relatively minor types of offenses involved, and too cumbersome and time-consuming considering the multitude of violations that occur. In addition, two other Commission proposals were pending at the close of the fiscal year in the Bureau of the Budget for coordination with other Government agencies concerned. They were: An amendment to exempt persons serving in the FCC unit of the National Defense Executive Reserve, who are not otherwise employed by the Commission, from the conflict-of-interest provisions of section 4(b) of the Communications Act which prohibit any "member of the Commission or person in its employ" from having, for example, a financial interest in the manufacture or sale ofwire or radio apparatus. These provisions have been found to be unduly restrictive and have deterred well-qualified persons from serving in the Commission's Na tional Defense Executive Reserve Unit. An amendment to section 1114 of title 18 of the United States Code (and by reference thereto section 111 of title 18) to include as a Fed eral criminal offense the killing or assaulting of certain employees of the Commission while engaged in the performance of their inspection duties. The enforcement of the Communications Act of 1934, as amended, and its rules and regulations, involves physical dangers and risks to employees who serve in the capacity of inspectors pursuant to that act. The Commission feels that its enforcement arm should be strengthened and that offenses against its employees should be punished in the same manner and to the same degree as are offenses against the Federal employee now designated in section 1114 of title 18 of the United StatesCode. Legislatian Affecting the FCC In the 86th Congress more than 250 bills and resolutions affecting the Commission directly and indirectly were introduced (some 200 in the House and 50 in the Senate). This proposed legislation included such subjects as: Prohibiting the authorization of subscription TV. Directing the FCC to authorize the use of VHF boosters to bring TV to remote communities. Establishing a community TV bureau to aid small communities in obtaining TV service. Amendments to exempt "news" programs from section 315 of the act relating to equal·t1me broadcasting for political candidates; and to restrict the appllcatlon of that section to the major candidates. Spectrum management and utiUzation. Authorizing funds for educational TV. REPORT OF THE FEDERAL COMMill'IICATIONS COMMISSION 37 Payments to local and state governments (in lieu ofproperty taxes). Ethics, conflicts of interest, and standards of agency conduct. Advertisements of alcoholic beverages in interstate commerce. Implementation of recommendations of the Legislative Oversight Committee. Terms and conditions for the Government selling its Alaskan communication facilities. Limiting the applicability of antitrust laws to broadcasting certain profes sIonal sports events. Establishment of a military or auxiliary radio service (MARS). Giving the Commission jurisdiction overbroactices with respect to smtions and adver tisers in TV, ... well as of the multiple ownership of TV smtions. The report made specific recommend..tions concerning modification ..nd enforcement of existing rules and new statutory ..uthority. Com mencing in March 1958, the Commission conducted a public hearing which all'orded interested p..rties ..n opportunity to comment on the findings, conclusions, and recommendations of the report. Notionol Spot Sol•• As a sequence to this hearing, the Commission on January 28, 1959, invited comments on .. rulemaking proposal to prohibit TV st..tion li censees from being represented in national spot sales by any organiza tion which also operates a TV network. The principal issues were whether oper..tions of networks restrain competition for n..tion..1spot sales representation and restrain competition between national spot and network business. On the basis of its findings, the Commission in October 1959 adopted a rule to prohibit TV networks from serving ... national spot representatives of their affiliated smtions but gave them lUltil December 31, 1961, to abandon this practice. Option Tim. As a result of the s..me public hearing, the Commission adopted de t..iled findings concerning "option time"; i.e., the term used to desig nate certain hours of the broadcast d..y during which network affili..ted stations contract to carry sponsored network programs. The number of hours th..t may be optioned, ..nd the conditions under which the option m..y be exercised, are regulated by Commission rule. The 44 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 45 Commission concluded that optioning of time by affiliates to their net works is reasonably necessary for successful network operation and is in the public interest. On January 14, 1959, these findings were submitted to the Attorney General of the United States for an opinion on the applicability of the antitrust laws to the option-time practice. By letter of February 27, 1959, the Assistant Attorney General in charge of the Antitrust Divi· sion informed the Commission that, in his opinion, the option-time practice "runs afoul" of the Sherman Antitrust Act. Thereafter, on April 23, 1959, the Commission proposed to amend its existing rules governing the option-time practice. The proposed changes al1l designed to improve the competitive position of other groups affected by option time, and the freedom of program selection of a station under its affiliation contract, while maintaining the essen tial features of the option-time practice. Interested parties were given until August 3, 1959, to comment on the TV option-time pro posal, as well as to comment on the need for similar ruIemaking with respect to the aural broadcast service. Network TV Program Selection Practices Because the staff network report did not include programing, the Commission subsequently undertook a study of this subject and, on February 26, 1959, initiated an investigatory proceeding into net work TV program selection practices, including "tying-in" of pro grams with network time and facilities, attempts to control program ing, attempts to restrict and exclude independent programs, and other related questions. As a result of TV program revelations, this inquiry (docket 12782) was enlarged on November 9, 1959, for Commission review of its statu tory authority to determine what, if any, action it could take in the matter of broadcast programing. POUTICAL BROADCASTS Lar Daly Case On February 19, 1959, the Commission issued a series of interpreta tions on the applicability of section 315 of the Communications Act to certain newscasts by a number of Chicago TV stations. Its actions arose from the following facts: Lar Daly was a legally qualified candi date for nomination for mayor of Chicago in both the Democratic and Republican primaries. Mayor Richard J. Daley and Timothy P. Sheehan were mayoralty candidates in the Democratic and Republi can primaries, respectively. Lar Daly complained to the Commission that the stations in question had in their newscasts shown film clips of his primary opponents and had refused his request for equal time. 46 REPORT OF T:HE FEDERAL COMMUNICATIONS COMMISSION The film clips showed Daley and Sheehan filing their nominating pe titions, accepting political endorsements, certain political interviews, and Mayor Daley greeting the President of Argentina in Chicago and appealing for funds for the March of Dimes campaign. With two exceptions, the Commission, by unanimous vote, held that the film clips constituted a "use" of the facilities of the stations under section 315 entitling Lar Daly to equal time. There was a 4-to-3 vote on the two exceptions; namely, Mayor Daley greeting the President of Argentina and appealing for contributions for the March of Dimes campaign. The Columbia Broadcasting System and the National Broadcasting Co. (licensees of stations involved in the case) petitioned for recon sideration, and certain interested parties filed briefs insupport of these petitions. On June 15, 1959, the Commission, by a majority vote, issued an interpretive opinion in which it denied the petitions. Two Commissioners dissented, and one Commissioner dissentedin part and concurred in part. The majority opinion held that there was no legal basis for exempt ing candidates on newscasts from section 315; that the appearance of a candidate on such film clips was a "use" of a station's facilities within the meaning and intent of section 315; and that under the circum stances the station permitted a benefit or advantage to accrue to the candidate, thus placing itself under the statutory obligation to ex tend equal opportunities to opposing candidates under the then wording of section 315. Subsequently, Congress amended section 315 to exempt from the equal-time requirement qualified candidates appearing on "bona fide" newscasts, news interviews, news documentaries, and coverage ofon~ the-spot news events without, however, relieving broadcasters of their obligation to operate in the public interest and to afford reasonable opportunity for the discussion of conflicting views on issues of public importance. It became law with the President's sig!1ature on Sep tember 14, 1959. Comporoble Time In another case the Commission held that the requirements of com parable time do not require a station to make exactly the Same period of time available to each candidate, nor does it have to make available the specific periods requested by the claimant candidate; that the sta tion must treat rival candidates the same with respect to the use of its facilities 'and if it permits one candidate to use facilities over and beyond the microphone, it must permit a similar usage by other similarly qualified candidates; and reiterated that section 315 applies only to legally qualified candidates and not to authorized spokesmen. REPORT OF THE FEDERAL COMMillUCATIONS COMMISSION 47 :Political Libel Section 315 also prohibits a licensee from censoring the contents of .1\ broadcast by a legally qualified candidate for public office. In 1948 the Commission held, in the Port Huron BroaJicasting 00. case, that this prohibition prevents a station from censoring material in a politi 'cal broadcast, including material which may be libelous. In April 1958, in the case of Farmers Educational and Oooperatime Union of America v. WDAY, Inc., the North Dakota Supreme Court affirmed ·a judgment for a defendant radio station involved in a libel action based on statements made in 'a political broadcast. The court held that where, as in this case, the station called the libelous material to the candidate-speaker's attention and had permitted its presentation only after he insisted as a matter of right under section 315, the sta tion was absolved from libel by the provisions of that section. On .June 29, 1959, the Supreme Court of the United States affirmed this decision. "PAYOFFS" IN HEARING CASES The Commission is evaluating comments in a rulemaking proceed ing, inaugurated June 26, 1958 (docket 12509), proposing revision of the rules so that whenever consideration, including an agreement for consolidation of interests, is paid or promised in connection with the default, dismissal, or amendment of a broadcast application in hear ing status, the applications of all parties to the agreement will be dis missed with prejudice. This proposal was prompted by the growing number of such cases. The principal objection raised to this proposal is that it would bar and judicial history of broadcast station transfer and assignment regn lation under the Radio Acts of 1912 and 1927 and the Communications Act of 1934. It was prompted by a report of the House Special Subcommittee on Legislative Oversight. EDITORIALIZING More broadcast stations appear to be engaging in editorializing. However, during the year several additional stations were advised that in taking an editorial position against subscription TV without making any adequate effort to present the other viewpoint, they did not meet the standard of fairness set forth in the Commission's 1949 report on "Editorializing by Broadcast Licensees." ANNOUNCEMENT OF SPONSORED PROGRAMS A number of stations were advised that their failure to make the required sponsorship announcements while televising the kinescope summaries of the Kohler strike hearings conducted by a Senate com mittee in 1958 violated both the act a.nd the rules. These summaries had been supplied by the National Association of Manufacturers.. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 49 In another case, the Commission ruled that on TV an oral announce ment of sponsor identification need not be given if an appropriate visual announcement is being telecast. PROGRAMS Probably the most misunderstood phase of Commission regulation is that pertaining to broadcast programing. There is a popular but erroneous impression that the Commission has jurisdiction over indi vidual programs. This misconception is reflected in letters it receives complaining about certain programs or urging that favorite programs not be dropped. But the fact is that, in general, the Commission cannot put any individnal programon or off the air. The reason is that the Commission is given less control of broad casting than of telephone and telegraph services. While its regula tion of common carriers extends to rates, practices, and even to book keeping, its anthority over broadcasting is more limited. Section 3(h) of the Communications Act, which governs the Com mission, stipulates that a person engaged in broadcasting shall not "be deemed a common carrier." Consequently, Commission powers with respect to broadcast operation differ from those relating to tele phone and telegraph services. Further, section 326 of the same act specifically enjoins the Com mission from acting as a censor. It says in that connection: Nothing in this act shall be understood or construed to give the CommJs.. sion the power of censorship lWer the radio communieatioDs or signals transmitted by aoy radio station, and no regulation or condition shall be promulgated or fixed by the Commission which shall interfere with the right offree speech by means of radio communication. In view of these and other provisions of the law, the Commission has no say in the day-by-day programing of broadcast stations (other than requiring identification.. and certain other announcements), or the charges made for air time, employment, or salaries paid, labor relations, or other aspects of station internal management. It does, however, require the keeping of station logs, and the filing of periodic financial reports to enable it to evaluate the economic condition of the industry as a whole or in part. Unlike those of common carriers, financial reports of individual broadcast stations are not open for public inspection. In brief, Commission supervision of broadcasting is confined to two major categories. The first deals with the allocation of portions of the spectrum to the different types of broadcast services. The second concerns the individual station, and embraces applications to build and operate; the assignment of specific frequencies, power, operating time, and call letters; the periodic inspection of transmitting equip- 50 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION ment and other engineering aspects of operation; passing upon trans fers and assignments of facilities, also changes in existing authoriza tions; modifying find renewing construction permits and licenses; and issuing permits to radio operators to man the transmitters of these' stations. However, broadcast stations are required by the act to serve "the public interest, convenience, and necessity." Because radio channels are limited and are a part of the public domain, it is important that they be entrusted to licensees who have a proper sense of public' responsibility. The Communications Act sets up basic requirements which must be met by those who want to engage in broadcasting. In addition to· being legally, technically, and financially qualified, applicants must show that their proposed operation will be in the public interest. It is the responsibility of each broadcast grantee to conduct his overaIt activities aecordingly. As far as programing is concerned, the Commission does not pre scribe any percentages of time which should be devoted to particular subjects, such asn~ws,education, religion, public issues, music, etc. That is something which must be determined by the station owner on the basis of local, budgetary, and other considerations. In other words, programing is the responsibility of the individual licensee. Determination of program composition by station licensees can vary with the tastes and interests of the communities served. Thus, in ana~riculturnlregion, a station naturally features farm subjects. In some places the emphasis may be on religion, education, or music. In places where rival stations carry national network programs, the independent station must rely largely on local talent, transcriptions, ete. In small remote localities an AM: station may, for economic reasons, have to depend primarily upon recordings. The Commission does review the engineering, financial, and general service performance of a broadcast station, usually when it applies for renewal of license, to determine whethcr it has lived up to its representations and is operating in the public interest. The Commission does not require the regular filing of program scripts or recordings, nor does it ordinarily monitor programs. Its review of a station's ,general performance is based upon the station's renewal application and the Commission's record of its past operation. One section of the renewal form requires general information with respect to programing. The station submits logs and an analysis of its programing for a designated composite week. The broadcaster reports, percentagewise, on classifications of his programs by subjects, including commercials, for the composite week. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 51 This comparison of present with past programing enables the Com mission to determine whether a station licensee seeking renewal is continning the program structnre which he had previously represented to the Commission to be in the public interest. Ifthere seems to be a serions discrepancy, the Commission withholds license renewal while it calls the station's attention to the discrepancy. The station is usually able to make an acceptable explanation or readjust its pro gram schedule. Pending action on its renewal application, the sta tion continnes to operate. While it does not pass upon the nature or length of broadcast advertising, the Commission's review of a station's performance does consider deviation from promised program service which tends to ward constant interruptions of the program service in a manner not consistent with the public interest. Also, under a cooperative ar rangement with the Federal Trade Commission, which has jurisdiction over false aIld misleading advertising on the air, the FCC notifies the station concerned of broadcast advertising cited by the FTC so that these stations may take any necessary action consistent with their obligation to operate in the public interest. The Commnnications Act has an express provision (sec. 315) deal ing with broadcasts by political candidates. It says, in effect, that if It station permits any legally qualified candidate to use its facilities, it shall afford equal opportunities to all other such candidates for that office, withont power of censorship and ally charges not to exceed com parable use of such station for other purposes. This applies only to the use of a station by a candidate personally and not to other persons speaking in the interest or support of It candidate. In 1959, section 315 was amended to exempt from this section an appearance by a can didate on a "bona fide" newscast, news interview, news documentary and on-the-spot coverage ofa bona fide news event. Other than the provision affecting political candidates, neither the act nor the rnles require a station to afford "equal time" for the pur pose of replying to a controversial issue of public importance which has been discussed over the station. However, the 1959 amendment to section 315 contains a provision that broadcasters are not relieved of their obligation to operate in the public interest and to afford reasonable opportunity for the discussion of conflicting views on is sues of public importance. In its report on "Editorializing by Broadcast Licensees" in 1949, the Commission then, and has since, held that freedom of speech on the air must be broad enough to provide equal opportunity for pre senting both sides of public issues. Under such a condition, broad cast station licensees have the right to editorialize. 52 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The U.S. Criminal Code contains provisions, formerly in the Com munications Act, which prohibit broadcast of advertising or infor mation concerning "any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance," and utterance of "obscene, indecent, or profane language" over the air. These provisions are reflected in the Commission's rules. Courts have held that the usual type of broadcast "giveaway" program is not a lottery. Letters received by the Commission complaining about program matters not under its jurisdiction are acknowledged with explanation of Why the Commission can take no action. Complaints which may come within its authority are sent to the networks or the individual stations concerned; this affords an opportunity for the stations to submit comments. Upon receipt of the reply, the Commission evalu ates the evidence and determines what action, if any, is necessary. Such complaints are likewise acknowledged and the complainants are notified of the result of the Commission's inquiry. Complaints in volving false and misleading broadcast advertising are referred to the Federal Trade Commission. Complaints alleging fraud over the air are referred to the Departmentof Justice. In cases of gross violation of the Communications Act or its own rules, the Commission can either order a hearing on the renewal application or a proceeding looking toward revocation of license. The latter is the method usually followed. Some broadcast station licenses have.been .revoked; but these were ·mainly .because of hidden ownership, misrepresentation, faulty engineering, or continued and willful violation of the technical rules. The Commission does not license networks as such; only individual stations. However, station licensees are subject to certain "chain broadcasting" rules adopted by the Commission in 1941 to further competition in broadcasting. Recommendations of a special staff study of network broadcasting were the subject of a Commission hear ing in 1958. There is a Commission rule against the same person or group from operating more than one network, or more than one commercial broadcast station of the same type (AM, FM, or TV) in the same area, or more than seven AM, seven FM, or seven TV commercial stations throughout the country as a whole. Not more than five of these TV stations can be in the VHF band. Persons convicted of antitrust violations are, under section 313 of the Communications Act, subiect to license revocation. The Commission does not license radio sets that are used for re ception only, nor does it regulate their production, sale, or servicing. However, it does impose limitations on any radiations from such sets REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 53 which may interfere with broadcast or other air communication services. TELEVISION lTV) BROADCAST SERVICE Television Allocations Problems TV has grown phenomenally under the policies adopted in 1952. Nevertheless, it has become increasingly evident that the present TV channel allocation system fails to provide sufficient opportunity for expansion and attainment of a nationwide TV service. UHF has not lived up to expectations by developing as an integral part of a nationwide competitive system. On the other hand, station growth has nearly reached its ceiling within the 12 VHF channels. Only 70 commercial VHF assignments within the continental United States are open for new stations under present minimum spacing re quirements. These potential assignments are in sparsely populated areas of the North Central and Western States and few, if any, can be moved to areas where demand exists for additional stations. The only other possibility for station growth is within the 70 UHF chan nels, upon which only minor clusters of stations now survive. As of July 6, 1959, there were 437 VHF and 75 UHF commercial TV stations in operation in 267 markets. These fignres have changed but little in the past 2 years. Almost half of the 370 permits issued for UHF stations since 1952 have been voluntarily surrendered, and 92 of the 167 UHF stations which were built and operated are now off the air. A commercial nationwide survey in the spring of 1958 reported 3.2 million TV homes viewing one or more UHF stations as compared to 3.7 million UHF homes reported in a 1956 survey. Recent statistics of TV set manufacturers indicate that production of all-channel receivers (for both VHF and UHF reception) has dropped below 10 percent of total production. Also, only 26 of the 75 commercial UHF stations in operation during the first half of 1958 reported a profit. The failure of UHF to develop has led to a critical shortage of stations in many important markets. Of the top 103 TV markets, 36 have less than 3 VHF or 3 UHF stations. In nearly all of these 36 markets, the shortage of comparable facilities creates a serious ob stacle to fully effective competition. Many of the 36 markets contain the country's largest population centers, such as Hartford-New Haven, Grand Rapids-Kalamazoo, Birmingham, Providence, Dayton, Toledo, Syracuse, and Rochester. UHF stations are operating in only 11 of these 36 markets in competition with VHF stations; in the other 25, UHF has failed in 8 and has never been attempted in 17. Outside of the top 103 TV markets, UHF is operating in 33 com- 525681--59-----5 54 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION munities, mostly in areas where little VHF service is available be cause of distance or terrain. All but 5 of these 33 communities have UHF stations only. The Commission, the Congress, and the industry have given par ticular attention to this problem for a number of years. In a gen eral rulemaking proceeding extending over a 9-month period in 1955 56 (docket 11532), the Commission made an exhaustive study of possibilities for improvement of the TV situation. However, no proposal was found which warranted adoption at that time on the basis of the information at hand and without further study and evaluation. A general allocation study was accordingly launched to explore the various possibilities :for major long-range changes in the TV alloca tion structure which might facilitate improvement and a fuller ex pansion o:f the nationwide competitive TV service. One possible basic course of action-the shift of all or a major part of TV to the UHF band-was earmarked for special consideration. Pending the outcome of this long-range study, the Commission has also been en deavoring to improve the TV situation by the deintermixture of VHF and UHF assignments in those communities where it was able to find that such action was feasible and offered realistic prospects for ad ditional stations. Television Allocations Study Organization In considering alternative allocations, the Commission has taken into account generally the comprehensive and useful technical data contained in the report furnished by the Television Allocations Study Organization (TASO) in March of 1959. This organization, com posed of representative segments of the TV industry, has been work ing since it was formed on January 1, 1957, at the instance of the Commission, on a program of research into the technical aspects of present and potential VHF and UHF-TV service. The TASO studies include transmitting and receiving equipment, prediction and measurement of signal propagation, and subjective determinations of picture quality levels, together with field tests and theoretical analysis of TV service. (See further mention in chapter on "Re search and Laboratory.") TASO's :functions were limited to technical study, factfinding, and interpretation of technical data, and its report made no recommenda tions as to any specific TV technical standards which should be adopted. Complete data were supplied, however, from which a choice of specifications could be made. Also, the TASO data on equipment were based on current design and performancAl and con tain no estimates of possible future improvements. The work of REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 55 TASO is substantially completed except for tests of directional trans mitting antennas, certain other unfinished studies, and a supple mental report dealing with an analysis of the accumulated data. Deintermixed VHF-UHF Systems In the 1956 allocation proceeding, the Commission noted the in herent shortcomings in an extensive nationwide deintermixture pro gram, including the undesirability of eliminating VHF assignments in areas with little UHF set saturation, the inability to carve out significant areas in which UHF could grow because of the penetration of most areas with signals from VHF markets, and the likelihood that elimination of local VHF assignments would deprive substantial areas of existing service. It was hoped, however, that deintermixture would be a helpful interim measure pending adoption of a long-range allocations solution by serving to increase competitive outlets in some communities, establish a core of viable UHF markets, and arrest deterioration in the UHF industry. Experience with deintermixture has been disappointing. The pos sible communities in which deintermixture could be justified have been restricted by such relevant considerations as the limited op portunity to drop in VHF assignments at approved minimum spac ings, the necessity of rearranging assignments or station antennas in other communities, the danger of creating "white" areas, the avail ability of multiple VHF signals from nearby major cities, unfa vorable terrain, and insufficient UHF set conversion. Procedural delays caused by adjudicatory requirements in cases where VHF as signments were ordered to be removed have also served to minimize immediate benefits from deintermixture. In order to reevaluate the situation, studies were made during the year of deintermixture, both on a selective community and on a gen eral area basis. In the selective community study, 23 communities containing approximately 1 million homes were considered for de intermixture to all UHF. Generally, these communities are in mar kets which have one VHF and one or more UHF assignments, and are reasonably distant from VHF-only markets. Transition to UHF in these markets would be a slow and difficult process. Penetration of VHF signals into some of these communities could not be avoided. Thus, UHF in Lancaster would be subjected to competition from Philadelphia VHF stations, UHF in Manchester from Boston VHF stations, and UHF in Flint from Detroit VHF stations. The impact on UHF set production would not be great since the homes in those communities have some UHF set distribution. For the UHF area deintermixture plan, a solid and sizable area containing about 12 million homes was considered by including a 56 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION chain of communities having UHF experience and expanding it to encompass nearby and interspersed VHF communities. This would require deintermixing many large markets with little or no previous UHF experience, such as Cincinnati, Atlanta, Louisville, Indianap olis, Columbus, Rochester, Dayton, Toledo and Syracuse, and deleting Some 90 VHF stations. Among the deficiencies of this approach are that the basis for the selection of deintermixture areas is too vague to prevent "discrimina tion" as among communities, that the dislocation required is too sub stantial, that there is no assurance that all receivers would thereafter be all-channel sets, and that there would be little or no additional opportunities for communities within VHF-only areas to have a local outlet or multiple stations. 12 VHF System Evaluation of various methods of extending the use of the present 12 VHF channels, from reducing present minimum cochannel and adjacent channel spacings to an overall reshuflling of TV assignments, demonstrate that it is virtually impossible within the confines of 12 channels to have both sufficient competitive outlets in the major mar kets and local outlets in a large number of communities. The possibilities of using precision offset and directional antennas were also considered. The latest available data do not indicate that either of these techniques can overcome the inherent limitations of a 12-channel system. The Commission's studies indicate that, because of the geographical distribution pattern of cities, a significant in crease in assignments is possible only if cochannel minimum spacing is reduced to the order of 100 miles. Indications are that if new sta tions were squeezed in at reduced cochannel spacings of a minimum of about 100 miles, coverage of both the new and established stations would be limited to 25-30 miles. Alternative Courses of Action Fifty-charvnel system (retaining pre8ent liB VHF channels). Studies of sample assignment plans indicate that it is possible with 50 channels within and adjoining the VHF band to provide sufficient assignments to reasonably meet present and future TV needs. This plan is premised on study of 19 States east of the Mississippi River and north of Tennessee and North Carolina, because the problem of equitable allocations is the greatest in this area due to population density and concentration of cities. Present minimum cochannel (170 miles) and adjacent channel (60 miles) spacings, as well as re quired protection to Canadian assignments, were employed. This plan would permit at least five stations in all major TV markets, and REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 57 would provide liberally for local outlets elsewhere. Every operating or authorized VHF or UHF station could have an assignmeut. At least 1 channel could be assigned in this region to eveny conununity, of 35,000 population or more in a county of at least 50,000 popula tion. Educational TV assignments could be made to large markets and to smaller important educational centers. This plan would require an additional block of 228 megacycles above chaunel 13, which is now allocated to the Government except for a few megacycles whose use is shared by the amateur, aerouauti cal, radionavigation, and meteorological aids services. An exchange of spectrum space with the Government and the move of these non government services to other frequency bands with similar propaga tion characteristics would be required. The present UHF allocation (470--890 Me.) could be released for other radio services. However, 24 channels (300--444 Me.) would extend into the lower portion of the UHF spectrmn, and they would be more subject to certain un desirable effects, such as shadows, and would not permit as extensive service areas as the present 12 VHF channels. Transition to this expanded VHF system could be expected to take at least a decade. It would involve large expenditures by the Gov ernment for conversion of existing facilities, also require cooperation with other nations, and cost the public additional for all-channel sets. Fifty-clvl/Tlnel 8Y8tem (retaining channels 7-13).-An alternative system considered is a continuous 50-channel system which begins at 174 megacycles (channel 7) and extends upward to 475 megacycles. The spectrum space above chaunel 13 up to 450 megacycles is now almost entirely allocated to the Government, and the space between 450 and 470 megacycles to the non-Government land mobile radio services. This alternative would release TV channels 2-6, as well as the UHF channels 14--83, and might better serve the needs of various commu nication services for additional VHF to UHF spectrum space than a 50-channel plan retaining channels 2-13. There may also be some economies in set design and production in a continuous band. This plan would, however, be subject to the same complex and costly conversion and transitional problems as the alternative 50 channel plan. Moving existing stations from channels 2--6 to new assignments above 216 megacycles would also involve additional costs and reduce their present service areas. If such shifts were opposed, as must be presumed, the resulting adjudicatory process could be SO time consuming and burdensome as to discourage this solution. Twenty-five-VHF channel 8ystem (retaining channels 7-13). Another alternative studied would allocate 25 contiguous VHF chan- 58 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION nels to TV, beginning at channel 1 (114 Me.) and continuing to 324 megacycles. Under this plan, TV would lose channels 2--6 and would obtain additional spectrum space between 216 and 324 megacycles from the Government. This approach recognizes the possibility that national defense and other considerations might make the allocation of 50 channels to TV infeasible. Studies indicate that 25 channels approximate the minimal num ber needed to correct serious deficiencies in the present TV system. A 25-channel system would not be as flexible or permit the expansion possible in a 50-channel system. With presently required minimum spacings, a 25-channel plan would allow 5 stations in most of the top 100 TV markets but with limited opportunities for growth above this minimum. It could not meet community needs for local outlets. In 65 communities selected in the test area as requiring 1 assign ment (at least 35,000 city and 50,000 county population), all 65 could have 1 under a 50-channel plan, but 15 of the 65 could not under a 25-channel plan. With different specifications, such as limiting top markets to four assignments, more assignments could be available for smaller communities. Overall, a 25-channel system would permit moderate expansion in the total number of present stations. Sub stantial spectrum space in the UHF and VHF bands could be re leased for other radio services. However, these benefits must be weighed with the costs of a changeover from the present system. Present S11 VHF-UHF system, with all sets capable of receiving both VHF arui UHF.-As long as the bulk of home receivers are equipped to receive ouly VHF, the present intermixed system will not work satisfactorily. This handicap might be removed by a statu tory requirement that all TV sets shipped in interstate commerce be equipped to receive both VHF and UHF channels. This would result in automatic conversion over the next 10 years as the public replaced old sets with new sets. It would also make it potentially possible for UHF stations to reach all TV homes in their communities. This might be the stimulus needed for widescale UHF development. If effective, tllis course would have many advantages. The 12 VHF channels would insure wide-area service to rural and fringe populations. The 70 UHF channels would permit multiple stations in the major markets and local outlets in over 1,000 communities. UHF could grow with a minimum of disruption to the present TV structure and to the public. Both existing and potential UHF stations would be aided by the conversion of more and more homes to UHF. Nationwide distribution of all-channel sets would, however, involve higher costs to the public unless the costs of all-channel sets and antenna and installation could be lowered to the VHF-only level-the REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 59 differential now averages about $25. With only all-channel sets on the market and the pressure of competition, this might happen. How ever, improvements in UHF equipment and other factors could in crease production costs and result in higher prices for all-channel sets for a time atleast. Even if all-channel sets were in general use, it is questionable whether an intermixed VHF-UHF system would prove competitively feasible in markets with multiple VHF stations. Propagationwise, UHF stations have a shorter service range and are more affected by "shadowing" effects from uneven terrain, tall buildings, and changing atmospheric conditions than VHF stations. These differences are handicaps in obtaining network affiliations and national advertiser support. Seventy-channel UHF system.-The merits of assigning all or a substantial portion of TV to the UHF band were given extensive con sideration in the 1956 allocation proceeding. This approach to a long-range solution was found to warrant further study since, if fea sible, major benefits might ensue. Among these would be that no re allocation of other radio services would be required, that no inter national problems would be engendered, and that with 70 channels the long-run need for competing stations in the larger markets and for outlets in other communities could be adequately served. An appraisal of the potential of UHF to supplant VHF coverage was deemed essential to ascertain the feasibility of this approach, and a program of research was undertaken to ascertain the extent to which UHF transmission and reception could be improved. TASO, as a joint industry group, has not been able to undertake equipment re search and development programs because of antitrust considerations. As part of its studies, the Commission has inquired into the current status of UHF equipment development. It has found that research and development in UHF is continuing but at a slow pace due to the present generally unfavorable economic outlook for UHF. Im provements from transmitters to receivers appear essential if UHF service is to equate more nearly with VHF service. There is no strong evidence that UHF overall can provide service substantially equal to VHF without major increased outlays by the public generally. In its thinking on the all-UHF approach, the Commission is con cerned about such factors as the timelag before necessary improve ments in UHF equipment would be in actual use, the additional cost to the public for such equipment, the possible loss of national program services to the rural public if it must depend on local UHF stations, and the possibilities that some proportion of TV families would be deprived of existing service. 60 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Satellite Stations Since 1954 the Commission has anthorized some TV stations to operate on a "satellite" basis. These stations have the same status as regular TV stations and operate on channels allocated to their re spective commnnities. They are not, however, required to originate local programs or maintain studios. Usually they are in places with out regular TV service. Most of them are owned by licensees of reg ular TV stations in the same general area and serve to extend the service of these stations. In many instances, satellites have installed local studio equipment and originated some local programing. UHF Trans)afors To further help bring TV service to new areas, the Commission has since 1956 authorized UHF "translator" stations. These stations pick np the siguals of regular TV stations and rebroadcast them on the 14 higher UHF TV frequencies (channels 70-83). Using relatively inexpensive and low-power equipment, their average cost of installa tion is now nnder $5,000. Until recently, translators were limited to a maximum power output of 10 watts with which they provided, on the average, good reception to a distance of 15 or 20 miles. In Jillle of 1958 they were permitted to increase maximum power to 100 watts. Translators may not originate any broadcast material and must ob tain the consent of the stations whose signals they retransmit. Typi cally, they are built and operated by nonprofit corporations or groups, or by local governmental bodies. Most translators are in the West. VHF Boosters or Repeaters Though the Commission has not authorized regular TV repeater service in the VHF band, many VHF repeaters (also called boosters) are in operation, particularly in the mountainous and sparsely settled areas of the West. They receive the signals of distant TV stations and retransmit them either on the same or another VHF channel. While the exact number of these installations is unknown, estimates run as high as a thousand or more. The typical VHF booster is quite simple and inexpensive. They are often built by local nonprofit groups. Since boosters are presently illegal and could cause interference to other radio operation, the Commission in 1956 issued cease and desist orders against certain booster operators in Washington State. On appeal, this action was reversed by the Court of Appeals for the District of Columbia (0. J. Oomwwnity Services, Inc. v. FOO, 246 F. 2d 660) on May 3, 1957. The court held that such orders should not issue automatically against such nnauthorized operations and that other factors must be considered including whether, and on what REl'ORT OF THE FEDERAL COMMUNICATIONS COMMISSION 61 basis, the operations could be authorized. Thereafter, an extensive proceeding (docket 12116) was held to consider authorization of VHF booster operations. On December 30, 1958, the Commission concluded that such service could best be carried on by UHF translators since it did not appear that VHF boosters could operate as at present with out threat of interference to TV and other radio services. Accord ingly, booster operators were given a period of grace in which to apply for UHF translator facilities. However, the demand for VHF booster authorization has continued and the Commission now has the matter under further study and has submitted to Congress proposals to amend sections 318 and 319 of the Communications Act, to clarify the present statutory requirements concerning operation of radio facilities only by licensed operators, and to remove the present prohibition against the licensing of broad cast facilities constructed without prior Commission authorization. The proposed section 319 amendment would permit the Commission to license, under appropriate restrictions, VHF boosters which were constructed before January 1, 1959, and to authorize new ones. At the same time the Commission announced certain tentative mini mum requirements which appeared necessary, including limiting max imum power output to 1 watt, prohibiting "on-channel" booster operation (on the channel of the picked up station), and providing for remote control and the designation of a qualified person to be responsible for technical supervision and emergency call. Further action looking toward rules and standards to govern booster opera tions or toward the licensing of such operations depends largely upon congressional consideration of the Commission's proposed legislation. Meanwhile, the general "grace" period for unauthorized VHF booster operations was extended to September 30, 1959. The Com mission also announced that if rules are adopted to license VHF boosters, a reasonable period will be given existing VHF boosters to conform. On September 10, 1959, the Commission announced that it needed additional time to complete consideration of proposals to license boosters and hoped to resolve the remaining problems by the end of calendar 1959. It, accordingly, extended the grace period for existing VHF boosters to December 31, 1959. Community Antenna TV Systems Community antenna TV (CATV) systems are installations con sisting essentially of a master receiving antenna for reception of distant TV stations, and a cable system by which the received signals are distributed from the antenna to the home TV sets of subscribers. Since these systems do not transmit on the air, they do not require 62 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Commission authorization. However, CATV's are subject to Com mission rules which prescribe limitations on their radiations to pre vent interference to licensed radio and TV services. It is estimated that there are now some 700 CATV systems serving more than 500,000 subscribers (representing about 2 million persons) located in all but a few States. Pennsylvania leads in the number of systems aud subscribers. The largest systems have at least 10,000 sub scribers. The number of TV stations carried on each system ranges from one to seven or more. The majority carry at least three stations to afford subscribers a choice of programs. CATV systems are gen erally commercial operations, the subscriber paying an installation fee and a flat montWy charge which vary from community to community. Economic Impact of CATV and Other Auxiliary TV Operation In May of 1958 the Commission instituted an inquiry into the eco nomic impact of CATV, translator, booster, and satellite operations on the development of TV broadcasting (docket 12443). Claim of economic injury was advanced by a number of broadcasters, chiefly from 'Western States, in Senate committee hearings in 1958 and 1959, as well as in comments filed in the Commission's inquiry. There was one complaint of the effect on a TV station of the Commission's anthorization of two translators to bring outside stations into the com munity. Another complaint concerned the impact on one TV station by a VHF booster presenting programs from a station located else where. For the most part, however, the broadcasters' complaints relate to the impact from CATV systems diverting a portion of the audience which the local TV station would otherwise have. In particular, broadcasters complain of large CATV's bringing in very distant "big city" stations, more than 300 miles away in some instances, via micro wave common carrier facilities. In IH59 some 50 microwave relay systems served CATV's in about 75 comlmmities. In April of 1959 the Commission concluded that, while economic injury in these situations is undoubtedly present, it is difficult (and inapossible in any of the situations actually presented) to determine when such injury reaches a point to threaten the continued existence .of the local station or advent of a new station. Therefore, the Com mission decided that drastic restrictive action such as barring the operation of CATV's in particular "impact" situations-which would amount to excluding signals from a market where persons are willing and able to receive them via CATV-wouldnot be justified and that no authority to take action along those lines should be sought from Congress. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 63 It was determined that there is no present basis upon which FCC jurisdiction over CATV's, as common carriers or otherwMe, can be based. Itwas also concluded that possible economic injury to a broad caster from a common carriermicrowave-fed CATVis notlegal ground for refusal to authorize such facilities. However, it was believed that amendments to the Communications Act should be sought to put into effect two ofthe broadcasters' proposals: (1) to require CATVsystems to have the consent of the TV stations whose programs they carry, and (2) to require CATV systems to carry the programs of the local TV station on one of the CATV channels, if the local station requests it, and to do so without degrading the TV station's signal. At the close of the year, a subcommittee of the Senate Interstate and Foreign Commerce Committee commenced hearings on the Commis sion's proposed legislation concerning VHF boosters and CATV's and on several other Senate bills on the same subject, including proposals to give the Commission jurisdiction to license and control CATV's. Subscription TV The qnestion of authorizing a new type of service which would permit TV stations to transmit programs on a subscription basis is being explored in a rulemaking proceeding (docket 11279). Originally instituted in February 1955 in response to proposals involving different systems of subscription TV, this highly controversial subject evoked comments from more than 25,000 parties. The Commission concluded in a first report, released October 1'7, 1957, that before it could make a realistic assessmeut of the merits of subscription TV, adequate trial demonstrations, suitably limited and controlled, were desirable. Couditions were specified under which such applications by TV stations would be considered. In a second report, released February 27, 1958, the Commission deferred action on any applications wItil after the close of the 85th Congress in order to afford Congress an opportunity to consider pending legislation on the subject. Upon request of the House Inter state and Foreign Commerce Committee in July 1958, the Commis sion maintained the status quo so that the first session of the 86th Congress could resume consideration of this legislation. Upon further review of the matter, and determination that a change in this policy would be consonant with current congressional con sideration, the Commission on March 24, 1959, released a third report announcing that it was prepared to consider any appplications by TV stations conforming with the revised requirements and limitations set out in the third report. The revised conditions look to 3-year trial authorizations limited to markets in which the-re are at least four existing commercial TV 64 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION services, to the trial of any system in only one market, to one trial sUbscription system per market, and to subscription programs being broadcast over only one local TV station at a time. Also, until the Commission is able to reach an ultimate decision as to whether a regular broadcast subscription TV service should be authorized, and if so on what basis, it has decided that the public should not be called upon to purchase any special equipments required for toll TV recep tion but not needed to obtain "free" TV broadcasts. As of July 1, 1959, no applications were on file. STANDARD lAM I BROADCAST SERVICE Application Backlog The Commission has been concerned about the mounting backlog of applications for new and major changes in AM broadcast facilities and the time elapsing between their filing and Commission action. This backlog has resulted from various factors, including accelerated filings and the time required to study each application because of the complexity of interference and other technical considerations. One of the major delays is due to the necessity of reprocessing the same applications many times because of amendments changing the engineering proposals. To obviate this, the Commission on April 8, 1959 (effective May 16 thereafter), amended its rules relating to the filing of new applications for consideration with earlier applications. Under this new procedure, the Commission periodically publishes in the Federal Register a list of 50 applications at the top of the proc essing line and annOunces a date (not less than 30 days after publi cation) by which additional applications must be on file if they are to be considered with any of those listed. A new file number is assigued to an application when it is amended to change its engi neering proposal other than with respect to equipment. Any appli cation which has been assigned a new file number is treated as a new application filed on the day of its amendment. Though applying to all broadcast services, a 1952 amendment to the Communications Act (sec. 309(b» delays in particular the desig nation of AM applications for hearing. This provision requires the Commission to first notify each applicant of the reason he faces a hearing and give him time in which to reply even though the appli cant is usually aware of the situation. Accordingly, the Commission on February 18, 1959 (effective March 2 thereafter), amended its rules to make possible the granting of an applicant's request for waiver of such notification, when other interested applicants join in the request, in order to expedite the hearing designation. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 65 Clear Channels The basic question to be resolved in the clear-channel proceeding (docket 6741) is what changes, if any, should be made in the use of the clear channels of the AM broadcast band which are available by international agreement for use in the United States. The class I stations which operate on these channels are designated to render skywave (long range) service as well as groundwave (short range) service. At night they reach extensive areas beyond the range of other classes of stations. The United States has priority for 25 sta' tions on 25 of the 39 class I-A channels, and priority for 34 stations on 20 of the 24 class I - B channels. Under the present rules, class I-A channels with two exceptions are not shared at night by the class I-A stations with any other domestic stations. The class I-B channels are so allocated that the class I-B stations share the same channel with one or more other U.S. stations and with foreign stations. Thus, listeners are afforded a relatively high degree of protection from interference in reception of class I-A stations, and a lesser, though substantial, degree of pro tection from interference in receiving class I-B stations. The sky wave operation of clear channel stations is the only nighttime AM service available to approximately 25,631,000 persons in an area of about 1,727,000 square miles, which comprises somewhat more than ha]£ of the land area of the continental United States, with the exception of Alaska. The fUlldamental conflict in the proposals for revision of the clear channel rules lies between sustaining or increasing the capacity of the class I stations to render wide-area service and increasing the number of stations on these channels. Following an examination of the extensive record in the proceeding, the Commission on April 15, 1958, set forth its tentative conclusions. Comments were invited on proposals to open 12 specified class I-A channels in New York, Cleveland, Rochester, Chicago, Pittsburgh, St. Louis, and Philadel phia for additional unlimited-time assignments and to reserve for later determination proposals to increase power on the remaining class I-A channels. The class I-B channels would remain UIlchanged. On September 18, 1959, the Commission proposed further rule making to consider the assignment of new class II stations---1 each on 23 clear channels. It also provided opportunity for interested parties to update the record on proposals to increase the power of class I-A stations. Daytime Skywave In the daytime skywave proceeding (docket 8333) the Commission considered the desirability of amending the rules to provide, within 66 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION the areas served by class I clear-channel stations during daytime hours, a measure of protection against interfering skywave signals following sunrise and before sunset from cochannel stations. These skywave radiations cause increasing interference during the 2-hour interval before sunset, and decreasing interference during the 2-hour interval after sunrise. On September 18, 1959, the Commission terminated this proceeding and adopted permissible radiation curves to protect class I clear channel stations from future daytime or limited-time stations author ized to operate on those channels. It lifted the "freeze" on such new construction on six particular clear channels to increase that number to eight, but retained it on the other clear channels pending the outcome of the clear-channel proceeding. Extended Hours Proposals for Daytime Stations On September 19, 1958, the Commission decided in a rulemaking proceeding (docket 12274) not to adopt a proposal of the Daytime Broadcasters Association, Inc. (DBA), to extend the hours of opera tion of daytime stations from 5 a.m. or local sunrise (whichever is earlier) to 7 p.m. or local sunset (whichever is later), in lieu of the local sunrise to sunset hours now authorized. The proposal was re jected principally because it was found that the population which would, lose service by the change, particularly in rural areas, would be vastly greater than the population which would gain service dur ing the proposed nondaytime hours involved. The proposal would also involve interference to foreign stations inconsistent with inter national agreements. A petition of the DBA for reconsideration was denied on January 7, 1959. In an effort to determine whether some extended hours for daytime stations might be possible without causing the extreme interference involved in the 5 a.m.-7 p.m. proposal, the Commission on January 7, 1959, instituted an inquiry (docket 12729) to ascertain whether rule making would be warranted on a proposal to permit daytime stations to operate from 6 a.m. or local sunrise (whichever is earlier) to 6 p.m. or local sunset (whichever is later). Upon reviewing the comments, the Commission on July 8, 1959, decided against this proposal. Its decision was based on the losses of AM service, both groundwave and skywave, which would result in the various areas affected. The Commission also was unable to find any expression of local need which could not be substantially fulfilled under existing rules. Daytime Power Increase for Class IV Stations The rules were changed July 7, 1958 (docket 12064), to provide for acceptance and consideration of class IV (local) AM station applica tions for increases in daytime power up to 1 kilowatt instead of the REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 67 former 250-watt maximum, utilizing directional antennas, if neces sary, to protect other AM stations to the same extent as required previously. At the same time the Commission deferred final action on such applications until the new power maximum could be coordi nated with other parties to the North American Regional Broadcast ing Agreement (NARBA) and to the United States-Mexican Agree ment. On April 13, 1959, the Commission modified this so as to permit action on applications for class IV stations for power of over 250 watts on a local channel in all areas except those within 62 miles of the Mexican border or within a certain area in Florida (to protect Cuban stations). By July 1, 1959, 355 applications by~lassIV stations to increase power over 250 watts had been filed. North American Regional Broadcasting Agreement The first serious effort to control interference between AM stations in the North American region resulted in an agreement signed at Havana in 1937. Signatories were the United States, Canada, Cuba, Mexico, the Dominican Republic, and Haiti. Mexico subsequently raised certain problems with respect to six channels which were re solved in a collateral agreement between the United States and Mexico only (the so-called "Gentlemen's Agreement"). The original North American Regional Broadcasting Agreement (NARBA) entered into force in 1941 and expired in 1946. It was succeeded by an interim agreement which, other than minor adjust ments, extended the NARBA for a period of 3 years. Upon its expiration in 1949, Cuba refused to negotiate a new agreement and, for a while, made a number of assignments not in accord with the NARBA provisions which caused serious interference to AM service in the United States, particularly on the clear channels. A new NARBA was negotiated in 1950 which would, upon its entry into force, require adjustments in Cuban assignments to minimize the interference caused by the uncoordinated assignments. Mexico was not signatory to this agreement, but subsequent negotiations re sulted in the signing of a United States-Mexico bilateral agreement in 1957. The NARBA will not become effective until ratified by three of its major signatories-Canada, Cuba, and the United States. Cuba rati fied it in 1951 and Canada in 1957. The bilateral agreement with Mexico, of course, requires ratification by both Governments. To date, the United States has not ratified either agreement. In 1951 the President presented the NARBA to the Senate, and subcommittee hearings were held in July 1953 but no action was taken, possibly 68 REPORT'OF THE FEDERAL COMMUNICATIONS COMMISSION because of opposition by a group of broadcasters known as the Clear Channel Broadcasting Service (CCBS). In July 1958, subsequent to negotiationof the bilateral agreement with Mexico, further hearings encompassed both agreements. In this second hearing the CCBS supported ratification, but another group known as the Daytime Broadcasters Association (DBA) opposed the agreement with Mexico and, again, no action was taken. At a further hearing in July 1959 the DBA continued its objection. Additional headings are scheduled in January 1960. Opposition of the DBA, which represents some 150 of the approxi mately 3,500 AM broadcast stations in this country and is interested in added hours of operation for daytilne stations (mentioned previ ously), is directed only against a provision of the Mexican agreement restricting the use of six Mexican clear channels by U.S. stations. This provision reflects continuation of a similar provision of the "Gentlemen's Agrffi,ment." The latter has no termination date, whereas the neW bilateral agreement, which will supersede it, is for Ii peri6d of 5 years. In the last several years Cuba has made additional assignments noli"in accordance with the NARBA and it can be expected that further delay in ratification of the two agreements will result in a progressive deterioration of the present conditional status quo. FREQUENCY MODULATION IFMI BROADCAST SERVICE Commercial FM Increased interest in commercial FM broadcast was manifest during the year. It was evinced by a net gain of 135 such authoriza tions, 74 more stations on the air, 8 fewer deletions, more competition for facilities (24 applications being designated for hearing), and by higher prices in station sales. Except for portions of the northeastern part of the country and some of the larger cities (Chicago, Los Angeles, San Francisco, and possibly others), FM channels are still available. California ap pears to still lead all other States in FM interest-108 commercial FM stations are now authorized there. Seven States still have no FM stations-Alaska, Idaho, Montana, North Dakota, South Dakota, Vermont, and Wyoming. Puerto Rico gained three commercial FM stations during the year. The Commission abandoned its class B FM allocation plan in Au gust 1958. Under this plan, the 60 class B channels were allocated to cities throughout the country. If an applicant desired a channel where none was allocated, a rulemaking was necessary. Applicants now select their own channels, giving consideration to other assign- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 69 ments and pending applications in the area. Abandonment of the plan has resulted in more expeditious handling of applications. The majority of the new applicants are licensees of AM broadcast stations who propose to duplicate their AM programing over their FM facilities. Many of the applicants with no other broadcast con nections propose programing primarily intended for "good music" listeners. Subsidiary FM Operation One factor in the revived interest in FM is the opportunity to ob tain supplemental revenue through subsidiary operations. Since 1955 the Commission has permitted FM stations to engage in certain types of limited nonbroadcast services, commonly called "functional music," as an adjunct to their regular FM operations. An example is the supplying of "background music" programs to commercial establishments. At the close of the year, 127 FM stations held au thorizations to conduct this type of supplemental service. Initially the Commission authorized FM stations, upon proper application, to conduct functional music operations on a "simplex" basis pending the availability of suitable equipment, or on a "multi plex" basis at any time. When functional music programs are multi plexed, they cannot be heard on ordinary FM receivers. When simplexed they can be heard on FM receivers since they are trans mitted on the same carrier used for FM broadcasting. Special re ceivers sold or leased to subscribers eliminate or amplify certain por tions of the simplexed programs by means of inaudible supersonic siguals. On November 7, 1958, the Court of Appeals held the functional music rules invalid insofar as they excluded such operation on a sim plex basis and remanded to the Commission the case brought by WFMF, Chicago, which had appealed the Commission requirement that SCA licensees change from simplexing to mutliplexing. On October 15, 1959, the Supreme Court declined to review the case. Meanwhile, 15 stations involved in this litigation continued to simplex. On July 8, 1958, the Commission began an inquiry to consider pos sible additional uses of multiplexing by FM broadcast stations. Contemplated uses range from furnishing price quotations and stock market reports to providing doctor paging services and trallic light control. In considering the comments received in this proceeding and the increased public interest of stereophonic broadcasting, the Commission on March 11, 1959, requested comments on the subject of stereophonic broadcasting on a multiplex basis by FM broadcast 525681-59-6 70 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION stations. The time for filing these comments has been extended to December 11, 1959. Noncommercial Educational FM Broadcast The noncommercial educational FM broadcast service continued its slow but steady growth-adding 12 authorizations during the year to bring its total to 165. Two applications for noncommercial educational FM stations in the Los Angeles area were designated for consolidated hearing be cause of interference problems; these were the first applications for such stations ever designated for hearing. However, one applicant withdrew, leavingthe field clear for a grant of the other. INTERNATIONAL BROADCAST STATIONS In recent months there has been a renewed interest in international broadcast stations. In November 1958 the Commission authorized a new station near Belmont, Calif., to direct its programs to Central and South America. Another station, located near Scituate, Mass., has expanded its operations and presently transmits programs to Europe, Africa, and Central and South America. An application filed in May 1959 proposes a new international station in Texas to beam programs to Central and South America. One experimental station in Cincinnati, Ohio, operates on an international broadcast frequency to provide a continuous signal used in propagation studies by the National Bureau of Standards. All other international broad cast facilities in the United States are operated by the U.S. Informa tion Agency. EXPERIMENTAL BROADCAST SERVICES The Commission makes special provision for experimentation in connection with research and development in the technical phases of broadcasting. Stations engaged in this type of operation develop new or improved equipment and techniques and, in addition, obtain engineering data useful to both the Commission and the industry. Experimental Television Numerous licensees were active during the year in the field of ex perimental TV. This activity ranged from development of a hand carried TV camera and transmitter to experimentation with directional antennas. The improvement of translator equipment is receiving the attention of two manufacturers, and another company is conducting research to improve UHF and microwave tubes, an- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 71 tennas, and transmitting equipment. One UHF licensee is utilizing a low-power on-channel repeater station transmitting vertically polarized emissions to explore the possibility of minimizing reflec tions or "ghosts." Developmental Broadcast A developmental broadcast station, by definition, is one licensed ex perimentally to carryon development and research in radiotelephony, whereas the experimental TV station directs its research toward the improvement of TV broadcasting. Applicants for the developmental type of authorization generally hold an AM or FM station license, and permission for short-term special operation may be granted these permittees without the necessity of submitting a formal application. The statistical analysis of broadcast station authorizations do not reflect the 36 such authorizations during the year, each permitting a specified program of technical research for a 90-day period. Thirty one of these were conducted by aural broadcast licensees investigating possible methods of providing stereophonic broadcasts to the general public. Their reports will be helpful to the Commission in its con sideration of the stereophonic rulemaking proceeding. While in vestigation of "stereo" has received major emphasis, some limited developmental research continues in the field of compatible single sideband transmission by AM stations. STATISTICS Current Broadcast Authorizations At the close of fiscal 1959, outstanding broadcast authorizations totaled 10,120, which was a gain of 1,083 collectively for the year. Authorizations for the different classes of broadcast services at the year end were-- June 30, Increase or 1959 (decrease) 3,500 '47 667 2 " 6 24li 89 "'" 130 20 3 769 ,35 166 8 3 I 3,630 543 " 8 0 (I) 12 12 10,120 1,083 Commercial AM . • " . --. -__ _ a, 353 Commercial 'tV _•.• •.•__ •.•._" •••__ • •.•__ ••• 665 Educational TV • .. . ,_ .__ __ 53 TV translator.•••_.• , . . . . __ . __ .________ _ 156 Auxlliary TV • >______ ___ _ 8fH E:xpcrlm~ntalTV ___ _ ___ 17 Commercial FM • . __ . .___ ___ 634 Educational FM+ .______ _ _ _ _ ___1,~7 International. . .__ _ __ 2 Remote pickup .__ 3,087 Studlo-transmitter-link. • _____ _ ___ _ __ 61 DevelopmentaL __ • >___ _ ___ _ __ __ ___ I Low-power auxiliary (cueing)________ _ .______________ 0 I--:-:c:c-I---:-=:-I--:-:c:c- TotaL. • ._ __ _ ____ 9,037 Class June 30, 1969 72 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSI01'1 Status of Broadcast Authorizations The 1959 fiscal year closed with 5,405 AM, TV, and FM broad cast station authorizations outstanding. Of these, 4,920 had author ity to go on the air, and the remaining 485 held construction permits. A breakdown follows: Class Operating authoriza tions Construc tion permIts Total _ 3,:fl7 566 138 43 622 15< 4.920 123 101 187 .. 11 71 485 Further breakdown and readjustment of the TV figures give these results: Orand totals • ._ On air Not on air Total 436 '35 471 74~117 191 51O 162 662 33 5 38 9 16 '" 42 21 63 552 173 '" ._--------------------------- I~--I---I~-- Total commerciaL _ Commercial VHF _ Commercial UHF _ Total educationaL _ I Includes 2stations which went on the air and subsequently went off the air. 3Includes 45 stations which went on the air and subsequently went olI the air. The TV translator stations are all UHF. Also, 127 FM stations held subsidiary communications authorizations to engage in func tional (background) music operations. Broadcasting Since 1934 Though there was prior experimental operation, regular FM and TV broadcasting did not begin until 1941, and educational TV and TV translator services started in 1952 and 1957, respectively. Hence, the only regular broadcasting until 1941 was AM operation. Until 1949 Commission reports of broadcast totals did not give figures for stations actually on the air. Consequently, the following figures for ti,e period 1935 to 1948, inclusive, give total authorizations llEPORT OF TllE FEDERAL COMl\WNICATIONS COMMISSION 73 only for commercial AM, FM, and TV stations at the close of the fiscal years indicated: 1935 _ 1936 _ 1937 _ 1938 _ 1939 _ 1940 _ 1941 _ 1942 _ 1943 _ 1944 _ 1945 _ 1946 _ 1947 _ 1948 _ AM 623 656 704 743 778 847 897 925 912 92' 955 1,215 1,795 2,034 FM o o o o o o 49 42 48 52 53 511 918 1,020 TV o o o o o o 2 10 8 9 9 30 66 108 However, the following table shows the number of authorized, li censed' and operating broadcast stations, and pending applications at the close of the succeeding 11 fiscal years; also the number of sta tions deleted during those years: Year I I no\o" IP""dlng \ ICPs ITot»! ICPs notITotal Grants ttonsa~r~::·Licensed on air on air on aira~~:r· COMMERCIAL AM • 303 ,g,. 1184 Il7 ,:: 38 63 '00- 1949._____ •_____ "____________ 200 " 38' 1,963 43 2,"'" tn 2, 17 1960•••________ .._____ • ____ •• 194 70 m 2,118 26 2, 144 '" " IOi'il. ______•••••_____________ 116 35 270 2, 248 33 2,281 104 ',38 H162. _______ ._.___________._. 60 " 323 2,333 22 2,355 ... 2,' 1958. _______ . __ . __._.________ 187 23 "" 2,439 19 2,458 126 2, 19M.___ • __ • __ ••___________ ._ 148 " 226 2,565 18 2,583 11' 2,6 1955•••_____________________ . 16\ 18 304 2,719 13 2, 732 108 2,84 1956._______________ • _._.____ \97 \8 389 2,871 " 2,896 124 3,0 IM7______._._._____________ • 232 14 431 3,044 35 3,079 '" 3,' 1958..•__ • ___ ._.__ .•.•.____ •. 132 17 "" 3,218 35 3,253 100 3,3 HI59._ • ___________ •_________ • ". 12 679 3,328 " 3,377 ,23 3, COMMERCIAL FM 1949. ____________ ._._________ " 2\' " 377 360 737 128 866 1900._ •___________ •___ •••••__ 36 169 17 "3 \98 691 41 732 1951 ______ •__ •__ •__________ ._ 16 .\ 10 '" 116 '" 10 66' 1962______ ••••••_____ ._._____ 24 36 0 682 47 6" " 648 1953________________ ._••_____ " 79 8 661 " 680 21 601 19M. __ ._.___ •__ ,.____ •__ •__ • 27 64 , '" 24 "" 16 669 1955______ •__ ._.,____________ 27 44 6 '" \, 640 " '" UI56_ ••_________ ._••___ •_____ 31 37 10 '" 11 530 16 646 11157._ •__ •______ •_____ •__ •___ 40 26 " '\9 II "0 31 680 1{l1i8_. _________ ••___________ • 98 24 " '26 22 648 66 684 1959_ • ________ ._.____ •_______ \63 \8 71 '78 44 622 147 769 74 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION IG,~',I Dele- IPond!n. 1 I CP, ITot'l ICPm'I Total y"", Hons appllca- Licensed oDair on "" on "" author- Hons "'" EDUCATIONAL FM 194IL ________________________ 18 7 9 31 3 34 24 " 1950•• _______________ " , 3 61 1 62 20 82 1951 ______________ . _____._.__ 19 6 2 82 1 83 12 06 1952_________________________ 12 2 2 91 1 92 12 104 1953_____________________~••_ 13 1 3 106 0 106 10 1li 1954.•_______________ ••_._.__ 9 2 1 Il7 0 Il7 6 123 1955. ________________________ 7 3 1 121 3 124 3 127 195\L ____________________ "___ 13 • 6 126 0 126 10 136 1957_____~~_.n__ .V___~___~~__ 11 6 2 135 0 135 13 148 1958. ________________________ 11 3 6 144 3 147 10 157 1959. ________________________ 16 8 2 150 , 134 11 166- COMMERCIAL TV 1949____________________ •____ 15 7 338 13 56 69 48 Il7 1950.•__________________ ••___ 0 8 351 47 57 104 5 109 1951. _______ ••.______ . __ ._.__ 0 0 '15 81 26 107 2 109 1952. ________________________ 0 1 716 96 12 108 0 108_ 1953._~_______________~~_~___ 381 6 572 10' 97 198 285 .83 1954______~_______~__________ 174 81 200 104 298 402 171 573 1955_________________________ 67 68 127 137 321 468 124 5<2 195~L________________________ 60 25 128 186 310 406 lI3 609 1957______~~________~________ 65 13 129 344 175 519 132 651 1951L ________________________ 35 21 125 427 129 556 109 665 1959_________________________ 24 22 lI4 475 91 566 101 667_ TV TRANSLATOR 1957_________________________ 1 "I !I 48 I 17 1 11 "I 331 " 1951L _____________________~__ 88 34 92 92 64 '" 1959________~________________ 96 27 168 158 87 245 EDUCATIONAL TV 1952__ • ______________________ 0 0 1 0 0 ~I 0 0 1953_____________~___________ 17 0 29 0 1 16 17 1954_________________________ 13 0 17 0 6 24 30 1955_________________ 5 1 14 1 10 23 34 1956____________~____________ 7 0 II 1 19 21 4I 1957_________________________ 8 0 8 14 12 23 " 1951L _________________~____~_ 4 0 9 29 3 32 21 63 1959_____________~__~_~___ • __ 6 0 7 37 6 43 16 59_ Reinstatement of some deleted authorizations and other considerations not detailed In this table account for any seeming discrepancy in the relation of grants and dele tions during the year to the total year-end authorizutiolli:l. Stations actually operating or holding authorizations to operate are covered by the term "on the air." "CPs" indicate construction permit status. REPORT OF TJIE FEDERAL COMMUNICATIONS COMMISSION 75 Broadcast Applications During the year, 12,002 broadcast applications were received, or 1,655 more than the previous year. The following is a breakdown of broadcast applications in nonhearing status at the end of the fiscal year (for docket statistics, see "Commission" chapter) : DIs- Desig- On hand missed, nated On hand June 30, Received Granted denied, for June 30, I'" or hearing 1959 returned ----~- --- ------ 95 213 144 59 36 85 63 163 163 18 6 60 I' 101 99 5 1 11 64 364 292 3 1 131 11' 235 226 24 0 99 145 244 120 21 1 147 -~----------------- TV New stations..~.__ Major changes _ Transfers. _ Renewals . _ Licenses. __ . ._.__ Other . _ TV totaL~•• _ 4.1'14. 1, Z,W 1,133 130 5'" FM Now statiollS.• ._. •__ Major changes~_ Transfers. . , . Renewals. . _ Licenses. _ Other . _ F!'rI total __._~~_ A~U New statiollS___ _~.__ Major changes _ Transfers _ Renewals _ LIcenses _ Other. _ A1I totaL _ Auxiliary New stations__ •. _ Major changes~__ Transfcrs _ Renev.'als _ Llcenses~~._ Other..__ •~__ ._._ Auxiliary total~.._. Total nonhearing appUcations~._ 45 222 167 35 21 51 25 194 1S1 24 3 43 , 112 103 7 0 11 92 218 239 9 0 62 35 183 138 18 0 63 35 392 338 23 0 66 -----~------ --- --- 241 1,321 1,136 116 24 296 = = = = = 412 447 110 10' 168 516 261 630 127 70 60 649 102 917 80G 11. 3 " 422 1,244 1,133 78 2 453 159 444 369 38 1 149 108 1,054 893 82 4 184 -----~------ --- --- 1,414 4,736 3,447 488 238 2,047 = = = = = = \)I) 1, '218 I, M7 147 0 134 38 371 364 15 1 36 30 282 281 8 0 23 276 1,401 1,087 42 0 548 327 1,268 1,209 92 0 294 6 79 68 7 0 5 --- ---- ------ ------ 762 4,625 4,036 311 1,040 = = = = = = 2,911 12,002 9,752 1,045 308 3,006 TV and FM figures include noncommercial ooucatJonal; TV,in addition, includes translator stations, 76 REPORT OF THE FEDERALCOMMUNICATIO~~COMMI~~IO~ Broadcast Industry Financial Data In the calendar year 1958, the radio and television industry's total revenues (which are derived from the sale of time, talent, and program materials to advertisers) were reported at $1,553.1 million. Total radio revenues increased by 1 percent to $523.1 million while TV revenues rose to $1,030 million, or 9 percent above 1957. Total radio and TV profits of $209.2 million were 3 percent below 1957. Television broadcast profits of $171.9 million were 7 percent higher and radio profits of $37.3 million were 32 percent lower. The following tables show the comparative calendar 1957-58 finan cial data for the radio and television broadcast industries : All Networks and Stations, 1957-58 Percent in- Item 1957 1958 crease or (millions) (millions) (decrease) in 1958 Total broadcast revenues._ • ••••• $1,461.1 $1, 553. 1 6. 3 Radio 1 ••••••••••••• • •••• ••__ • .517.9 523.1 1.0 Television. •• 943.2 1,030.0 9.2 Total broadcast expenses •••__ .________ 1,246.5 1,343. \) 7.8 Radio ow_Ow 463. 3 4&'i.8 4. 9 Television. • ..__._~_~~_783.2 858.1 9.6 Broadcast income (before Federal income tax) • ••~214.6 200.2 (2.5) Radlo •.~• 54.6 37.3 (81. 7) Television••~~__~.~____160.0 171. I} 7.4 I Includes AM and FM broadcasting. Note 1: 1958 radio data cover the operations of 4 nationwide networks and 3 regional networks, 3,197 AM and AM-FM and 93 independent FM stations. Excluded are 99 AM and AM-FM stations and 18 inde pendent FM stations whooe reports were filed too late for tabulation. IIJ57 data are for the same networks and 3,007 AM and AM-FM and 67 independent FM stations. Excluded are 59 AM and AM-FM sta tions whose reports were flled too late for tabulation. 1958 TV data cover the operations of 3 networks and 514 stations. 1957 TV data cover the operations of 3 networks and 501 stations. Note I: 1957 data revised. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 77 Nationwide Networks Only, 1957-58 {Including owned and operated stations) Percent in· Item 1957 1958 crease or (millions) (millions) (decrease) in 1958 Total broadcast revenues••_ $535.9 $581,2 8. 5 Radton. •~•• • • •~_____68.0 64. 5 (5.2) Televlslon • .____________________ 461.9 516.7 10.4 Note 1: Ra.dio data include the operations of 11 nationwide network-owned AM stations in 1957 and 19 in 1958. Note s: Television data include the operations or 16 network-owned stations in I1M7 and 19m 1968. A1Jl Radio 1 Broadcast Revenues, &'penses, Income and Investment, 1967-58 [In thousands) 4 nationwide 3 regional All other networks and networks and stations J Industry total Item their stations i their stations i 1957 1958 1957 19.. 1l}li7 19.. 1957 19" ------------------ Total broadcast revenu6S_________ $68,065 $&1,488 $5,430 $4,870 $442,417 $451,~9$515.912 $520,597 Total broadcast eXDenses _________ 69,428 69,380 4,131 3, "" 387,295 409,618 460,8S4 482,607 ------ ------------ --- --- Broa<1cast income~efore Federal income tax~_____ (1,363) (~892) 1,299 1,261 li5,122 41,621 55,058 37,000 = = = = = = = = Investment in tangible broadcast property: Original cost- ________________ 17,170 18,661 1,658 1,780 309,368 312,860 328,196 333,301 Deprectatlon to date_________ 10,069 10,384 1,1'1'6 1,207 155,617 153,657 166,862 165,248 --- --- --------- --- ------ Depreciated cost___________ 7,101 8,'lT'1 48' 572 153,7S1 159,203 161,334 168,053 t E::rcludes independently operated FM stations, 67 in 1957 aud 93 in 1958. Also excludes 59 AM and AM·FM stations reporting too late to tabulate in 1957 and 99 in 1958. J Includes the operations of 21 network-owned stations in 1957 and 23ln 1958. 'Includes 3,076 stations in 1957 and 3,174 in 1958. 78 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION TV Broadcast Revenues, E::cpenses and Income, 1958 [In millions] Item Revenues from the sale of time: Network time sales: Nation-wide networks . __ . Miscellaneous networks and stations _ Total network time sales . _ Non-network time sales: National and regional advertisers. _ Local advertisers. . . 'l'otalnon-network time sales. __ . . _ Total time sales • . • _ DWuet-Commissions to agencies, representatives, etc. __ Net time sales~_._ Revenues from incidental broadcsst activities: Talent _ Sundry broadcastrevenues~_~~~__ Total incidental broadcast actlvitln'L •~_~__ Total broadcastrevenues~~_.__~•.•~__ ._ Total broadcast expenses of networks and stations~~~_~_ BrQadcast income (belore Federal incometax)~.~_ 3 networks Total 3 and tbeir 19 495 other TV networks owned and stations and 514 TV operated TV stations stations $306.7 $117.8 $4.24.5 ----_._~.-- ---_. __.~_._--... 306.7 117.8 424.5 73.5 271. 7 345.2 24.6 156.7 181.3 S8.1 428.4 526.5 404.8 546.2 951.0 183.4 75.9 159.3 321.4 470.3 791.7 161.8 10.4 172.2 33.5 32.6 66.1 195.3 43.• 238.3 5t6.7 513.3 t,030.0 439.7 418.4 858.1 77.0 94.9 171.9 I Of this amount $64.5 million is applicable to the total sale of network time. Note: 1957 national and regional time sales lor the 3 networks and 501 TV stations are revised from~ to $300.5 million and local time sales lrom $178.1 to $174.0 million. Revisions reflect reporting errors. for 1967 detected too late to be included in the 1957 report. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 79 FM Broadcast Revenues, &penses and Income, 1957-58 1957 1958 Item Nwnber of Amount Number o! Amount stations (millions) stations (millions) TOTAL I'M BROADCAST REVENUES 310 -------$i~i- 309 -------ii:s- 113 131 '7 2.0 93 2.5 ,.. 3.1 033 '.0 PM stations operated by: AM licensees: Reporting no FM revenues_ .• _ Non~AKrl\~~_~~.~~~~::::=:==:=::===:===:==:= I-~-I-~~-I-~-I~~- Total FM stations_. • ••_.I~~=~~I~~=~;"I~~~;,,;+~~;";;,,;,, TOrA.l. FM BROADCA.ST EH'ENSES FM stations operated by non-AM licensees._._________ 67 Industry totaL • _ I'M BROADCAST INCOME (before Federal income tax) FM stations operated by non-AM licensees____________ 67 Industry totaL _ 2.5 93 3.2 (') ------------ (') (0.5) 93 (0.7) (') (') I In view of the difficulty in a joint AM-FM operation in allocating FM operation expense separately from AM station operation expense, licensees of such stations were not required to report FM station expense seJ)Mate1y. As a result, FM industry totals for expense and income are not available. AM·FM licensees, however, were requested to report separately the revenues, if any, attributable to FM station operation. ( ) Denotes loss. Investment in Tangible Broadcast Property of Television Networks and Stations, 1958 I"m Three networks and their owned and operated statlons~ Pre-freeze stations_• •_. __~_.~._ Total pre-freeze_. •__._.~•~._._ Post-freeze stations: VHF_~• __~_ UHF~• __ • ._.~• • _ Total post-freeze statioD.lL..~~•__ Orand totAL•••• •• • • _ Investment in tangible Number of broadcast property (thou- sands) stations Original Depredated 00" 000' '10 $136,105 $82,652 " 149,149 69,235 I 113 285, 2M 151,887 322 203, lOS 123,218 70 34,412 18,662 '01 237,520 141,880 614 li22,774- 293,767 I Includes 5 post-freeze stations (4. UHF and 1 VHF) owned and operated by networks. Safety and Special Radio Services GENERAL The Safety and Special Radio Services comprise more than 40 cate gories of radio users. They embrace all non-Federal usage of radio except broadcasting, common carrier, and experimental. These radio stations are used to assist in the preservation of safety to life and property, for operational and business purposes, and for navigational aids, all forms of maritime, air, and land transportation, by almost every kind of business and industry. Two services permit radio usage for personal convenience or pleasure. Most of these radio services did not exist 25 years ago. At that time only the marine and amateur services had a significant number of stations. During the past quarter century a tremendous development has occurred in these nonbroadcast services. By virtue of technical ad vances and greater knowledge concerning the utilization potentials of the radio spectrum, it has become possible to accommodate many more users at a cost feasible to them. The Commission has had under constant study methods by which more effective usage can be made of the limited spectrum space avail able. This has resulted in a regulatory program involving tighter tech nical standards, narrower channel spacing, and other devices which have made it possible to extend greatly the usage of radio. This devel opment is best portrayed by a few numerical contrasts. Atthe present time, over half a million licensees are authorized to operate more than 1.7 million fixed, mobile, and portable transmitters for the many varieties of safety and specialized communication purposes on the water and in the air as well as on the ground. These half million authorizations represent a tenfold increase over 25 years ago. In fact, their number has practically doubled in the last 5 years. All this has taken place despite thelimited frequency space allocated to these services and the fact that the licensees are required to share frequencies. No leveling in the demand for such communications facilities is foreseen for many years to come. Thus, the Commission's effort to discover more effective ways to utilize the spectrum, as evinced by the general radio spectrum inquiries discussed hereafter, 80 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 81 as well as constant efforts to increase speed and efficiency in handling the volume of applications, continue to be major problems to which priority attention is being directed. LEGAL AND REGULATORY PROBLEMS Microwave Inquiry Pending the outcome of the major allocation inqniry in docket 11866 involving the allocation of frequencies in the so-called microwave por tion of the spectrum above 890 megacycles, most of the authorizations for private point-to-point microwave systems have been granted on a limited basis for short-term periods. Shortly after the close of the fiscal year, the Commission adopted a report and order in this microwave inquiry which summarized the problems, enunciated general principles to govern its further actions, and terminated the proceeding. The determination of greatest sig nificance to the users or potential users of the Safety and Special Radio Services is summarized as follows: There are now available adequate frequencies above 890 megacycles to take care of present and reasonably foreseeable future needs of both the common carriers Rnd private users for point-to-point communications sys tems, provided that orderly and systematic procedures and proper technical criteria are applied in the issuance of authorizations, and that imple mentation is consistently achieved with respect to all available and future improvements in tbe art. There is a demonstrated need for private point· to-point communications systems. Accordingly, the decision looks toward liberalization of the basis for issuance of such authorizations. Availability of common carrier facilities will not be considered as a condition of eligibility for such private users. Concurrently, the Commission proposed rulemaking looking toward adopting interim technical standards to govern the granting of appli cations for private communications systems (excluding broadcasters) using microwave frequencies above 952 megacycles. This would re sult in applying orderly technical criteria to the issuance of microwave authorizations for such private microwave systems until rules and standards are adopted for the use of microwave frequencies on a regu lar basis in each of the safety and special services. It is anticipated that the general policies announced in the micro wave docket, as further implemented by specific rules, will spur utili zation of the microwave portion of the spectrum to the public interest and benefit. As indicated, while the general microwave proceeding was in proc ess, private point-to-point microwave systems were granted on a developmental basis for short-term periods in certain safety and special services. In some instances, the Commission was unable to 82 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION reach a public interest finding permitting grants for private micro wave systems within the applicable rules or the policies set forth in the microwave proceeding. This is illustrated by the Oentral Freight Lines case (docket 12570) which was designated for hearing on July 31, 1958 and the evidentiary hearing phase completed in June 1959. 25-890-Megacycle Inquiry This frequency allocation inquiry covers nearly all of the present allocations for the Safety and Special Radio Services (excluding point-to-point private microwave operations), as well as the broad casting and common carrier usage of frequencies. This inquiry (docket 11997) was instituted on April 5, 1957, for the purpose of de veloping a general review of the basic frequency allocation policies, based on technical information and needs developed since the last overall review of this kind made over a decade ago. As of June 1959, the oral phase of this inquiry was completed. The record is voluminous and will require exacting and probing analysis. It is expected that this task will result in the development of broad policy principles which, in turu, will generate specific rule making designed to convert and implement these policies into positive action programs. A.T. & T. Consent Decree and Applications Involving Bell Contraels As indicated in previous annual reports, the antitrust consent decree of January 24, 1956, involving the American Telephone & Telegraph Co. and its subsidiaries, has created legal and regulatory problems concerning the leasing and maintenance of equipment by such companies for private communications systems in all the safety and special radio services. During fiscal 1959, all applications in these services showing leasing of equipment from a Bell company were reviewed on a case-by-case basis, pursuant to the Commission's obligation to consider relevant antitrust matters in its general public interest determinations. Consideration of this category of applications has necessitated the development of policies to deal with varied situations presented. The most basic and significant of these policies were formulated through adjudicative and rulemaking proceedings. Based on formal protest involving applications of the Oonnecticut Water 00. and Wooldridge Bros., Inc. (dockets 12323-4), the Commission interpreted section V of the consent decree and resultant Commission public interest poli cies in a decision adopted December 3, 1958. Further guides were developed in a rulemaking proceeding (docket 12722) which, on March 25, 1959, promulgated a new rule. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 83 Strict adherence to these formally stated standards has been main tained by a continued special review of applications. The result is that no applications involving Bell contracts executed after March 9, 1956, are being granted, and applications involving Bell contracts which were executed on or before March 9, 1956, and which do not require additional equipment are being granted with a termination date of January 24, 1961. One problem of the consent decree remains unresolved in the rule making proceeding in docket 12722. This involves the effect, if any, upon the restrictions imposed on the Bell companies by section V of the consent decree shonld any jurisdiction declare such lease-mainte nance activity to be a communications common carrier service subject to public regulation. The latest action having a bearing upon this question is a June 29, 1959, decision of the California Public Utili ties Commission refusing to permit the Pacific Telephone & Telegraph Co. to cancel its tariff and withdraw from leasing and maintaining such equipment for private communication systems. MARINE RADIO SERVICES Safety At Sea Safety of Life at Sea Oonference, 1960.-An international confer ence is scheduled to be held in London during 1960 for the purpose of revising the 1948 safety convention. Preparatory work on formulat ing U.S. recommendations for revision of the 1948 radio provisions has been completed by a Government-industry radiotelegraphy and radiotelephony committee. Over 8 months were spent on this task. St. Lawrence Sea1vay.-Opening of this seaway (a) brought U.S. oceangoing ships engaged on international voyages into the Great Lakes, and (b) permitted large U.S. cargo ships to navigate on inter national voyages between U.S. ports on the Great Lakes and Canadian St. Lawrence River ports outside the Great Lakes area. Under exist ing law, most of the commercial ships in either of these categories are required to be equipped with a radiotelephone installation for com pliance with the Great Lakes agreement and with a radiotelegraph installation for compliance with the safety convention; i.e., they are required to maintain simultaneous operational availability on the same ship of two safety radio systems. To alleviate the burdens created by this situation, pending appropriate revision of the safety convention, the Commission adopted a policy whereby oceangoing ships in cate gory (a) may be relieved from radiotelegraph requirements while being navigated west of Montreal, and nonoceangoing ships in cate gory (b) may be exempted from radiotelegraph requirements. 84 REPORT OF THE FEDERALCO~UNICATIONSCOMMISSION The St. Lawrence Seaway Development Corporation issued oper ating rules and regulations pertaining to that portion of the seaway under U.S. jurisdiction. The Commission contemplates rulemaking to conform its present rules to the frequencies agreed upon by the United States and Canada in a document signed August 14, 1957. The governmental frequency matters involved will be coordinated with the Interdepartment Radio Advisory Committee (IRAC). Exemption from compul8ory radio requirements.-In order to eliminate the necessity of formal applications for individual exemp tions from the radiotelephone requirements of title III, part III, of the Communications Act in circumstances where such applications would invariably be granted, and thereby provide a public conven ience to the vessel operators concerned and appreciably reduce some of the routine administrative work of the Commission, a general ex emption from title III, part III, was granted by the Commission to all U.S. vessels subject thereto which are of less than 50 gross tons and are navigated not more than 1,000 feet from the nearest land at mean low tide in the coastal waters and tidewaters of the Gulf of Mexico in the area between the Rio Grande River and Cape Sable, East Cape, Fla. Exemption applications were handled as follows during fiscal 1959 : Applications for exemption Received Granted Denied DI..- Pending missed ~----------- From oompulsory radiotelegraph requirements ,_____ 37 '32 4 0 1 From compulsory radiotelephone requirements (title III, pt. III, of Communications Actp________ , 372 100 47 90 " I Not included in this table are 28 emergency radiotelegraph exemptions~ted. 2 Granted on condition that specified radiotelephone requirements would be met. I Not included in this table are 45 temporary radiotelephone exemptions which were granted. 4 Includes 45 applications carried over from previous fiscal year. Technical Developments and Studies New requirements for equipment.-Effective January 1, 1959, cer tain shipboard radiotelegraph and radiotelephone transmitters op erating on freqnencies below 30 megacycles became subject to prescribed spurious emission limitations. On the same date, the Com mission's type-acceptance program became applicable to certain radio telephone transmitters operating below 30 megacycles. Further, on July 1, 1959, the minimum power requirements became effective for radiotelephone transmitters operating between 2000 kilocycles and 25,000 kilocycles. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 85 Tests of 1Jertin a common carrier basis to serve CATV systems in 8 communities. 112 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION These protests were granted in June 1959 to the extent of postponing the grants and permitting the parties to argue, in July thereafter, the policies and conclusions announced in the decision in docket 12443 inso far as applicable to the facts of the protested applications. It appears that policies and considerations relative to permitting point-to-point microwave common carriers to serve CATV systems will continue to be a major problem throughout fiscal 1960. Other Regulatory Matters Discontinuanoe of 8e1'Vwe.-The Commission during fiscal 1959, considering in each case pnblic convenience and necessity, granted 12 requests for discontinuance of communication service by telephone carriers. One such case involved circumstances where the telephone subscribers live in an adjoining State and in the territory of another carrier which will continue to provide service; another where the com munity had been abandoned; eight where the telephone service would be continued by another telephone company; and two where telephone companies discontinued message telegraph service in areas which will continue to be served by Western Union. Speed of 8C1'Vioe.-The Bell System reported further strides in expediting toll calls. The average speed of completion during 1958 was 64 seconds. Aoquisitions and oonsolidations.-The Commission received 19 ap plications from telephone companies during fiscal 1959 for certificates under section 221 (a) in connection with the proposed acquisition of the property of other telephone companies. Sixteen of these, to gether with three held over from 1958, were granted without hearing. Of the four pending at the close of the year, one involved an ap plication by Wisconsin Telephone Co. to acquire the Menomonee Falls Telephone Co. and the Lisbon Telephone Corp. Pursuant to request of the United States Independent Telephone Association, a hearing was held on that application and the initial decision recom mending grant was issued on September 19, 1958. Oral argument on exceptions was held before the Commission on April 24, 1959, and the application was granted on July 1 thereafter. Depreoiation.-During fiscal 1959, as a result of extensive studies, the Commission revised depreciation rates previously prescribed for 4 Bell System companies, including 2 multistate companies serving 12 State areas. The new rates reflect both upward and downward ad justments in rates for the individual classes of plant of the companies involved. They represent a net increase of about 1.6 percent in the charges based onthe depreciation rates previously in effect. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 113 The need for controlling the level of depreciation rates has become more evident since telephone plant facilities are continuing to expand because of unprecedented service requirements. In the case of the 23 companies of the Bell System, the total depreciable plant amounted to approximately $5.4 billion and $20.6 billion as of the end of 1945 and 1958, respectively. The related annual depreciation accruals ag gregate $216 million and $898 million, respectively. For the year ending December 31, 1958, the depreciation charges are equal to al most 20 percent of the Bell System's total operating expenses as com pared to current maintenance, traffic, commercial, and other operating expenses which approximate 29, 21, 14, and 16 percent, respectively. Because of the continued rapid expansion of the telephone industry and accompanying technological changes, the Commission's task in connection with the prescription of depreciation rates and other de preciation matters is becoming increasingly more complex and ex tensive. The development of an electronic central office system is an example of a revolutionary change. Commission studies during the past 2 years indicate that, because of a number of significant advan tages offered by this new development, a large portion of the electro mechanical types of central office systems currently in service may be retired prematurely. The introduction of electronic central office systems could also have an important impact on depreciation rates for other classes of facilities such as telephone instruments, private branch exchanges, and even some outside distribution plant. Original C08t accountimg.-The accounting rules and regulations of the Commission provide that telephone plant acquired shall be re corded at original cost and that journal entries recording such ac quisitions shall be submitted to the Commission for consideration and approval. The accounting for several current acquisitions of plant, including acquisitions of communication plant from nontele phone companies, was handled during the year. In certain instances, this involved the disposition of amounts in excess of original cost. Relief and pensions.-Certain of the Bell System companies sub mitted proposals to revise their service pension accrual programs by providing for the amortization over a 10-year period (20-year period for two companies) of the unfunded actuarial reserve requirement. Approval was granted and it is expected that the other Bell com panies will submit similar proposals. Field Studies and Reviews The accounts, records, and accounting procedures of communica tion carriers are reviewed periodically for compliance with the Com mission's accounting rules and regulations. Such reviews, conducted 114 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION by the three Common Carrier Bnreau field offices (New York City, St. Louis, and San Francisco) and by the headquarters staff, are di rected to the ascertainment and verification of the adequacy and propriety of the accounting performed, the reliability of which is required for rate studies, rate proceedings, and depreciation rate studies. During fiscal 1959, reviews and studies were made of certain of the accounts and related records of seven Bell companies and one in dependent company. These reviews and studies were directed pri marily to accounting for statiou apparatus and station connections, for additious to aud retirements of telephone plant, distribution of over head and supply expense, Federal income taxes on profits of TVestern Elcctric Co., inventories, and the establishment and maintenance of continuing property records as well as other matters. A study is in progress to determine the reasonableness of the revised actuarial data underlying the basic factors used in the determination of Bell System service pension accrual rates for the year 1959. Also, a review was made of the diversification of the investments of the Bell pension trust funds. The preliminary study, mentioned in the 1958 report, tracing the corporate history and development of the General Telephone System from its organization in 1935 to the present time, is now completed. DOMESTIC TELEGRAPH Highlights For the calendar year 1958, the 'Western Union Telegraph Co. reported a 2-percent decline in gross landline operating revenues, and systemwide net income of $12,660,000 compared to $14,194,000 in 1957. The decline was due to an 8A-percent drop in telegram volume which was not offset by the substantial growth which occurred in leased-line business or rate increases in the latter half of the year. The com pany continued its modernization program to reduce costs and im prove service, but speed of service showed need of more improvement. Direct Western Union office representation in small communities con tinued to diminish by the closure of many railroad and other tele graph agency offices. General Western Union provides the only nationwide telegraph message service. It operates nearly 4 1 12 million miles of telegraph circuits, and serves the public through 21,200 telegraph offices and agencies and some 56,000 direct teleprinter and deskfax customer connections with central telegraph offices. Its landline telegraph plant represents an investment of some $364 million. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 115 'Vestern Union's domestic public message service accounted for only 66 percent of its total landline revenue as compared with 69 percent in 1957, reflecting a 9.2-percent loss in public message volume. Private-line telegraph services, its next major source of revenue, ac counted for 17 percent of total revenue as compared with 15 percent in 1957, reflecting expansion in the service and rate increases which were placed in effect December 2, 1958, on an interim basis. Al though Western Union's leased private-line service revenue of $40.7 million represented more than a $4.5 million increase over 1957, the Bell System still handles the major part of the Nation's private-line telegraph business. Western Union also provides domestic tele graphic money order service (its third most important revenue pro ducer), commercial news (stock ticker and commodity prices) services, and a variety of other nonmessage services. Western Union's gross landline operating revenues for calendar 1958 totaled $240,729,000, a decline of $4.8 million from the previous high in 1957. The decline, due principally to the loss in message vol ume, occurred in spite of message rate increases and other revenue relief effectuated in the latter half of 1958. The company's system wide net income, including ocean-cable operations, amounted to $12,660,000 in 1958 after Federal income taxes, compared to $14,194,000 for 1957. The company's investments in seven companies active in electronics and allied fields, as part of a program of selective diversification and to supplement Western Union's own research and development activ ities, amounted to more than $3 million at the end of 1958. Services and Facilities Modernization and plant improvements.-During 1958, Western Union expended about $4 million on its modernization and plant im provement program. Since the program's inception in the middle 1940's, IVestern Union has spent about $80 million, and another $18 million is projected. The principal facets of the program include the continued automation of message handling at traffic centers and central offices, and improvements to increase the capacity of the radio beam network presently linking New York, Philadelphia, Washington, Pittsburgh, Cincinnati, and Chicago. Extension of this microwave network to Kansas City, planned for 1960, will provide increased cov erage to meet the growing demands for private wire facilities by busi ness and Government. The program also includes the installation of new-type carrier terminal equipment to increase the number of tele graph channels derived by Western Union from voice channels leased from the Bell System. 116 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Private wire systema.-Western Union has installed and leased more than 2,000 private wire systems, using approximately 3 million miles of circuits, and some of these systems cover hundreds of individual points. Facilities in private wire service in calendar 1957 were 2,533,251 miles. In December 1958, Western Union completed instal lation of the last of 5 fully automatic centers serving the U.S. Air Force, linking 200 Air Force bases with a 250,000-mile network-the world's largest private wire system. A contract has been negotiated for the construction and sale of similar automatic centers at oversea Air Force bases to extend the system around the world. Similar centers will be set up for the Federal Aviation Agency at Hawaii and the Canal Zone. A 25,OOO-mile private wire system was placed in service for International Business Machines Corp. to link its headquarters and 245 offices, plants, laboratories, and parts centers. A 15,000-mile system was installed for General Dynamics Corp. Ad ditional systems were installed for other business firms, and existing networks for other customers were explUlded substlUltially during the year. Intrafax.-In May 1959, Western Union installed a new 12,000-mile nationwide facsimile weather map network for the U.S. Air Force Strategic Air Command. This new system, known as the Strategic Facsimile Network, links 57 weather stations at Air Force bases throughout the country and makes it possible for up-to-the-minute weather maps to be transmitted immediately to air operation centers. Maximum copy size of maps received over this system are up to and including 18 inches by 36 inches, approximately three times larger than any previously trlUlSffiitted by facsimile. Facsimile arui teleprinter tielines.-During the fiscal year, 2,300 new deskfax machines were installed to speed service, increase business, and reduce costs. As of July 1, 1959, there were 36,000 facsimile machines used by the public to send and receive approximately 43 million tele grams a year in picture form, simply by pushing a button. The tele grams of another 19,500 business firms are handled by a teleprinter connection with Western Union central offices, making a total of 55,500 direct connections now serving telegraph users. The program, started in 1954, of furnishing larger users with direct tieline connections into the Western Union system is being continued. Twenty-one additional large users were provided with these connec tions during fiscal 1959, increasing the number to 381. In addition, approximately 140 business firms using teleprinters in Detroit have been connected directly into the automatic telegraph network and the plan is being extended to othercities. Telex service.-The first customer-to-customer teleprinter exchange service between the United States and Canada was inaugurated by REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 117 Western Union in May 1958. The new service, called Telex, pennits users to dial other subscribers directly for two-way telegraph com munication. In February 1959, the telegraph company took a first step in providing Telex service between subscribers within the United States by linking New York with Chicago, as well as with 24 Canadian cities then served. Extension of this service to Los Angeles and San Francisco is expected to be started in late 1959, with other cities in the United States to be added inthe future. Research and development.-Western Union expended $1.4 million for research and development in 1958. Developments included com pletely transistorized CRrrier tenninals, a new fully automatic private wire reperforator switching system for commercial users, a flatbed type of facsimile transmitter which transmits a stack of messages auto matically, and improved techniques in microwave propagation and application of compllter techniques to switching system problems through experiments with magnetic drum storage. The company is engaged in programs designed to improve existing and develop trans mission techniques to provide intercity facilities capable of handling the transmission of high-speed data and facsimile material. Supplementation of facilities and curtailments of service.-Pri marily to meet the needs of private wire services, Western Union was authorized to extend or supplement its lines by the addition of more' than 300,000 telegraph channel-miles and 24,000 faesimile channel miles, leased from other carriers. In the area of service curtailment, the Commission during fiscal 1959 grunted 1,145 applications of Western Union, two-thirds of which involved the closure of agency offices operated by railroads and local est»blishments handling negligible amounts of traffic. The remainder concerned closures or hour reductions of company-operated main and branch offices. Agency closures generally result in eliminat ing direct 'Western Union representation in many small communities, although service remains available by telephone. The closure of branch telegraph offices has often been occasioned by the growth of customer tielines and the increased use of telephone for acceptance and delivery of messages. In all Cl\SeS of closure or reduced hours of public offices, substitute service has been made available. A limited number of on-the-spotfield, investigations have been made by the FCC staff to ascert"in service conditions before and after service cur tailments. Speed of service.-Westel'jl Union is required to conduct and report m9nthly on studies of the spwd of itsmessageservices. To the extent that the FCC budget pennits, on-the-ground service iuvestigations are made at Western Union offices and agencies. During the year, 200 ri25681-~9-9 118 R:I)POI\T OF ·TH:I) ,FED:IlRAL COMMUNICATIONS COMMISSION s,uch inspections w<:>re made. Deficiencies revealed through these and other sources, including complaints from users, are brought to the company's attention in order that corrective measures may be tak<:>n to improve service. The overall origin to destination speed of service (time filed to time delivered, or first ltttempt) reported by vVestern Union was somewhat slower in 1957 and 1958, particulltrly with respect to messages deliv ered by telephone and messenger, although it continued to be faster than prior to 1955. The slower service resulted principally from the application of rigorous expense controls which, according to the tele graph company, were made necessary by the declining message load. As a result, labor force requirements were not predictable with suf ficient accuracy to avoid instltnces ofservice deficiencies. Reports submitted thus far in 1959 indicate that increased efforts are required on the part of the company to bring service up to a sat i$factory lev;el at several cities, particularly with respect to messages d<:>livered by messenger. The company advises that major changes in the methods ofoperation to improve service are contemplated at cer tain cities in'1959 and 1960, and that studies are being made at other offices with the view of devising and carrying out new procedures or installing equipment for the purpose ofeliminating service deficiencies. Rates and ,Tariffs D07Mstwtelegraph,rates.-On August 1 and on subsequent dates in 1958, increased rates for interstltte message telegraph, press, money order, >lond miscell>loneous services were effected by 'Vestern Union. The rate increases resulted in revenue increases of about $10 million It yeM- and offset in Pltrt wage increases negotiated in June 1958 esti mated to increase operating expenses by about $10,838,000 anIlllltlly. Also effective August 1, 1958, chltrges were revised for internlttional messages and associated landline charges which were estimated to in crease Western Unionlandline revenues over$2 millionannually. Upon petition of the major marine telegraph carriers, the Commis sidn, on December 30, 1958, modified its order of September 4, 1952, iIi docket 9915, to allow increases in the maximum charges for marine telegraph fnll-rate messages of 1112 cents per word in the landline for warding charge and of 1 cent per word in the coast-station charge, with proportionate increases for other message classifications. Leased facilities se1'1Jwes.-The Commission's investigation (docket 11646) into the lawfulness of the charges, classifications, regulations, and praetices in cOIiIiection with the leased facilities services of West ern Union continued. Dut-ingthe year Western Union filed tariffs to REPOIlT OFTFlE FEDERAL COMMUNICATIONS COMMISSION' if!} effectuate increases in the charges fO,r these services. The COlllmi":' sion found that the record in the proceeding supported the need for some increases in rates onan interim ba'sis,. but that the tariffsched~' ules presented certain questions as to the lawfulness of the charges and regulations contained therein. The Commission also found that the interest of Western Union in an interim revenue increase, and the interests of the public in protection against any charges that may' ultimately be found not justified, would both be served by the issu ance of a 1-day suspension order requiring Western Union to keep accounts of the amounts received by the new schedules. Revisions of the rates applicable to intra-U.S. interstate private wire facility leases were placed into effect December,2, 1958, on an interim basis, and were estimated toincrease Western Union's annljal revenue by $5 million. Important rate level and rate structure decisions must be made by the Commission beforethis matter is finalized. Tariff8chedtde8.~Duringthe year, carriers filed 958 pages of do mestic telegraph tariff material and 32 applications for permission to file tariff schedules effective on less than statutory notice. INTERNATIONAL TELEGRAPH AND TELEPHONE Highlights In fiscal 1959, the international telegraph .industry as a whole re ported good earnings as a result of both the substantial growth which' has occurred in the so-called customer-to-customer oversea serviceS and the message telegraph ,rate increases effected in August 1958. The year also witnessed a modification in the policy heretofore" adhered to of restricting A.T. & T.'s oversea operations to the rendi tion of voice communication and of restricting the internationaltele~' graph carriers to furnishing record-type communication. Thischange . of policy is the outgrowth of customer requirements (particularly , defense requirements) for oversea channels which can be used alter nately or simultaneously for a combination ofvoi~,,record-, and ' data-type transmissions. Since such requirements can only be met' by A.T. & T.'s new high:capacity transoceanic cables, the Commis sion authorized it to provide the service re,\uested for defense purposes.. Also, during the year, the Commission went on record as endorsing,', in principle, proposed legislation which would authoriie a merger of the international telegraph carriers. A second A.T. & T. transatlantic telephone cable to handle com munications primarily with the European continent via France was opened September22, 1959. 120 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION General Internationa,l telegraph service is furnished principally by Amer ican Cable & Radio Corp. (through its operating subsidiaries), RCA Communications, Inc., and Western Union, which handle above 90 percent of all international telegraph traffic, and five smaller carriers. International telephone service is furnished principally by A.T. & T. These companies also furnish service to ships at sea and aircraft. Revenues of the international telegraph carriers were over $77 million in calendar 1958, an increase of 0.6 percent over 1957. Some' $11 million of this amount was'derived from leased channel and Telex services, a 15.2-percent increase from the previous year. A.T. & T. revenues from oversea services increased 21.6 percent over 1957 to $26 million in 1958. Problems Technological advances and changing user requirements (particu larly of the defense agencies) are the principal contributors to a nUIiJ.ber of problems facing the Commission in the field of interna tional communication'. The more important of these problems are out lined in the following paragraphs. Revwion of policy generally re8trieting an international aarrier to, either telegraph 01' telephone 8erviae8.-Until recently, communica tion by wire and radio could be categorized as either record or voice. The Commission has generally followed apoHcy in the international, field of restricting telegraph carriers to the furnishing of record com munications services and generally restriCting the telephone carriers to the furnishing of voice communications services. New techniques and user requirements, however, have created a demand, principally from defense agencies, for broadband voice grade' channels to be used in transmitting data and other record communi cations simultaneously or alternately with voice communications. At' the present time, A.T. & T.'s submarine telephone cables can best accommodate this demand since the international telegraph carriers cannot provide the necessary facilities. , The Commission has therefore had to reexamine its policy and has authorized A.T. & T. to provide such services to the defense agencies. At the same time, it authorized A.T.& T. to lease facilities to the telegraph carriers to enable them to provide similar services to the defense agencies. InoreaSing 8aarcity offre~noie~alloaated to international point ta-pointrailio 8ervide8.-Althoughdevelopments have !)lade it possi ble to provide some additional channels and' new circuits in' that portion of the frequency spectrum allocated to international point-to- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 121 point operations, it is becoming increasingly difficult to satisfy the demand for frequencies without interference to or from worldwide operations. This problem may be aggravated if foreign proposals to reduce frequency space for fixed service are adopted at Geneva. One possible solution to the demand for frequency space is the con struction of high-capacity cables of the type now in operation to the United Kingdom, Alaska, and Hawaii. At present, however, these cables have not resulted in the release of radiofrequencies formerly used for such operations because of the necessity of having standby radio systems in case of cable breakdown. Reevaluation of rate struoture of international telegraph ca'l"'l"iers. Since 1950 the revenues of international telegraph carriers from leased channel and Telex services have risen from 2.7 to 14.7 percent of their total revenues. Rate investigations by the Commission in the international telegraph field in recent years have been mainly confined to point-to-point message services. With the rapid growth of the direct customer-to-customer services there is a growing need to under take the complex problem of examining the rates for these services to determine their reasonableness. Threatened loss of traffW by international telegraph oarriers.-In addition to the loss of traffic associated with the demand for broad band channels, the international telegraph carriers face a possible loss of traffic, particularly in the overnight category, to the Post Office Department as the use of jet aircraft and missile mail delivery is developed. This threat can best be met by the developmentof faster, more efficient telegraph service at low rates. In addition, with the new demand for leased channel and data-processing services which require high-quality broadband channels, it is likely that the inter national telegraph carriers will lose business to A.T. & To's high capacity cables unless they can install plant of the necessary quality_ Western Union divestment.-This company, as a result of its 1943 merger with Postal Telegraph, became subject to the requirement in section 222 of the act that it divest itself of its international telegraph operations. The Commission, after ordering such divestment in 1943, allowed successive extensions of the time in which this was to be accomplished. In 1958, as a result of an investigation in docket 10151, the Com mission ordered Western Union to submit by December 31, 1958, a plan under which divestment would be accomplished within 6 months after approval of the plan. On appeal, the Circuit Court held that, although the Commission had authority to order Western Union to come forward with a plan for divestment under conditions set out by the court, the order at issue was not within such conditions. The 122 \IlEl'OR'l' OF 'l'I;IEFEDERAL COMMUNICA'l'IONS COMMISSION .matter· was remanded to the Commission for further action. The ·.Commission on July 29, 1959, required ·Western Union to present a plan for divestment within 90 days, subject to certain conditions and .to take other related action in this matter. Inte'l"ltatwnal formula.-Section 222 of the act also requires that Western Union distribute telegraph traffic destined to points outside the continental United States among the various international tele graph carriers in accordance with a formula prescribed by the Com mission in 1943 when Western Union merged with Postal. A number of hearing cases have been instituted with respect to the operation of this formula, some of which have not as yet been resolved. Changing conditions in the industry, as well as an evaluation of certain aspects of the formula indicate that a revision of the formula may be desirable in order to achieve the legislative purposes more effectively. International telegraph merger.-The Commission endorsed, in principle, a bill to permit merger of international telegraph carriers. The Commission's position was that such merger would aid in solving some of the problems facing the industry. Thus, a merged carrier could more easily add new plant incorporating the latest technological advances without encountering problems faced by the presently com peting carriers. It would also be able to ease the pressure on available frequency space through more efficient use of frequencies. Problems arising from the administration of the international formula would be reduced. Absorption of the Western Union cable system into such a merged carrier would meet the divestment mandate of Congress. In its comments, the Commission made suggestions as to the precise wording of a permissive merger bill. Ifsuch bill is enacted into law, and application is made to the Commission for approval of a proposed merger, it is likely that a lengthy public hearing will be necessary. Ocean Telephone Cables Interest in ocean telephone cables has heightened. The United States is now linked with Hawaii and Alaska by A.T. & T. telephone cables. The first transatlantic telephone cable, connecting Newfound land and England, is carrying increased traffic, and another A.T. & T. cable, between Newfoundland and France, has been opened. Both of these cables are linked to the United States by radio facilities. Docket Cases Puerto Rico applications.-A final decision in this matter (docket 10056) was issued October 1, 1958, after oral argument on RCA Communications exceptions to the initial decision. It upheld the grant of applications of Mackay Radio & Telegraph Co. and all REPORT OF THE FEDERAL COMMuNICATIONS COMMISSION 123 America Cables & Radio, Inc., for modification of their fixed public service radiotelegraph station licenses to permit operation ofa circuit between the United States and Puerto Rico on a regular rather than on emergency basis. Far East traffic.-An initial decision in this matter, upholding the legality of Western Union handling of traffic to various Far Eastern points over its cable system via London, was released December 15, 1958 (dockets 11364 and 11663). The matter is now awaiting oral argument on exceptions filed by RCA Communications, which claimed that Western Union under the international formula is not entitled to handle such traffic. Delays in haadlin!! international press traffic.-On July 9, 1957, a hearing was held on complaint of Press ''\Tireless, Inc., alleging excessive delays in the transfer by Western Union to Press Wireless of international press traffic specifically routed by the sender via PrellS Wireless (docket 11871). An initial decision was issued February 25, 1958. Both parties filed exceptions and the matter is awaiting decision. Radiotelephone 8","vioe to Huwuii.-On July 29, 1959, after oral argument on RCA Communications exceptions to an initial decision, the Commission upheld the grant of A.T. & T.'s application (docket 11954) to communicate with Hawaii from its radiotelephone trans mitting station in California, and denied the mutually exclusive ap plication of RCA Communications (docket 11955) except for non message services. Western Union practices u1Uler international formula.-Hearings in this matter, requests of American Cable & Radio Corp. and RCA CommunicatJions for Commission rulings on the lawfulness under section 222 of the Cdmmunications Act and the international formula of certain Western Union practices (dockets 9369 and 11298), have been deferred pending negotiations between the parties. Oircuits to Turkey and IsTael.-As reported previously, applica tions of Mackay and RCAC to commwlicate with Ankara, Turkey (docket 10360), have been consolidated for hearing with the appli cation of Mackay to communicate with Istanbul, Turkey (docket 10489). Similarly, a hearing has been ordered on the application of RCAC to commnnicate with Tel Aviv, Israel (docket 8990). At the request of the parties, these hearings have been postponed indefinitely. Partwipation u1Uler international formulu.-Mobile Marine Radio, Mobile, Ala., is negotiating with other international telegraph car riers receiving outbound marine traffic from Western Union in an effort to attain informally the objective sought in a petition it filed 124 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION in January 1957 for participation in the distribution of such traffic under the international formula. Mobile Marine Radio has asked that no action be taken on itspetition meanwhile. Press Wireless lieenae modification.-Hearings were ordered on ap plications of Press Wireless, Inc., for modification of its licenses to permit it to handle nonpress material over its Telex service (dockets 12539 and 12540). Alternate voice and data transmission aerviee for u.s. Air Force. On June 5, 1958, the Commission granted the applications of A.T. & T. for modification of its point-to-point microwave radio service station licenses for facilities between Portland, Maine, and the Canadian border connecting with the transatlantic telephone cable system (TAT), so as to authorize the furnishing of an alternate voice and data transmission service to the U.S. Air Force. Subsequently, Western Union filed a protest and request for recon sideration. In addition, A.C. & R. and RCAC also opposed the grants. On July 31, 1958, the Commission set the applications for hearing (docket 12569) but permitted A.T. & T. to continue to furnish the subject service pending outcome of the hearings. Further prehearing conferences were deferred pending attempt of the parties to obtain certain data informally with respect to the requirements of the Air Force in connection with the subject service. STATISTICS General Annual reports were filed by 509 common carriers and 6 controlling companies for the calendar year 1958. Considerable financial and operating data taken principally from these reports are published annually in a volume entitled "Statistics of Communications Com mon Carriers." The larger telephone and telegraph carriers also file monthly reports of revenues and expenses, and summaries of these data are published monthly by the Commission. Telephane Carriers Annual reports were filed by 500 telephone carriers, including 96 carriers engaged in generallandline telephone service and 404 miscel laneous common carriers engaged only in providing land mobile radio telephone service. Sixty-two of the 96 telephone carriers were subject to the comprehensive landline telephone reporting requirements of the Commission, and the remaining 34 were required to report on the more limited basis applicable to mobile radio carrier licensees. Selected financial and operating data concerning 54 general tele- REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 125 phone carriers whose annual operating revenues exceed $250,000 are shown in the following table for the year 1958 as compared to 1957. Telephone carrier81. 19fi' 19'" Percent of Jllcrease or (decrease) 3.41 3." '.24 ~~ (7.38) (2. fi2) (10.51) (.26) 15,730,185 1,147,594 41,669,686 91,709,071,298 3, 348,. 76£.\ 655 637,025 265,707 371,3 1 8 $3, 116, 25$, 692 Hi, 212, IS7 1,109,405 39,594,950 87, Q45, 665, 525 3, 141, 782, 287 687,781 272.842 414,939 $3, H!4, 438, 4n5 Number ofcBrriers,~.~,~• .____ 54 54 Book cost of plant (as of Dec. 31) __~• •• $20,337, 15M, 177 $21,998,473,853 8. 17 Depreciation and amortization reserves__ "________________ 4,611,206,261 4, 81l8, 318, 412 6. 23 Net book: cost of plant-~__~__ • .____________ 15,726,373,916 17, 100, 156, 441 S. 74 Local service revenues••~~3,8.56,426,053 4, 178, 651, 133 8 M Toll service revenues~~••~2,4'11,140,872 2,614,891,776 6.82 Total opeffltlng ,.l'''enues__ • • •••~~6,647,798, 713 7,142,942,217 7.45 Operating expenses and operating taxes~4,919,782, 837 Ii, 057, 587. 95.5 2.80 Provision fOr 1<'('de al income taxes__~._~~793, 143.106 gfl3, 073. 448 21.4~ Net operating Inoone after all taxes.~~_~________934,872,170 1,122, 280. 814 20.05 Net income____ ___ _ 861,700,961 1,001,192, OM 16.25 DJ vJdends declare(L~•~1~~'26~.';;38;;.;;";;lol~~6;;70;;.~13;;6;;."";;9;;1==~6;;.9;;," Company telephones: Buslness • _ Coln~> Resldence • _ Number of calls originating during the year: Local 2 • _ Toll ' __ . . .• • ••_~ NUlIlber of employees at end of October__~.• _ Male .• . • _ Female , .~• _ Total compensation (or tbe year~~~• 1 Data shown relate to telephone carriers whose annual operatIng revenues exceed $250,000.Intercom~ pany duplicat·ons, exclpt in minor !nstances, have been eltmtnated. I Partly estimated by -ep'1rting carriers. _ a The number oC calls shown are not comparable, as many calls were reclass1fl.ed from "Toll" to "!.ocal" during 1958, due to enlalgtlment oC numerQUS local calling areas. Landline telephone companies filing reports with the Commission include most of the larger companies (accounting for over 90 percent of the industry revenues), but exclude the great majority of the 3,900 telephone companies in the United States. There are also additional thonsands of connecting rural or farmer lines and systems. Tele phone industry estimates are that its operating revenues in 1958 to taled $7.7 billion, with book cost of plant at December 31, 1958, of $24.2 billion, and 701,000 employees. Land mobile radiotelephone service is offered by 30 of the 62 tele phone carriers reporting to the Commission as "fully subject" carriers. This service is also offered by 34 other carriers engaged in general landline telephone service. In addition, 404 miscellaneous common carriers offer land mobile radiotelephone service. Reports filed by the latter group show that their operating revenues for 1958 totaled $3.1 miIlion. More than half of these carriers reported operating losses for 1958. Domestic Telegraph Carrier The following table sets forth financial and operating data relating to the domestic landline operations of the Western Union Telegraph Co. for the calendar year 1958 as compared to 1957. The data per- 126 ,REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION taining to its cable operations are included in tables below showing data of international telegraph carriers. The WesternUn~Telegraph. 00. 1 Item Book cost ()f plant (as of Dec. 31) _ DepreCiation and s.illortlzation reserves Net book cost or planL . _ Message revenues _ Total operating revenues_ . . . .. _ Operating expenses, depreCiation, and other operating reve- lluedcductlons .. Net operating revenues. __ " __ ._ Provision fOT Federall.neome taxes. _ Net income .. . . . __ Net income (lrmdline and cable sysooms) __ Dividends (Iandline and cable systemsl _ Number of revenue messages handled 3 __ < Number of employees at end or October _ Total compensation for the year _ 1957 $3SQ, 859, 633 147,334,384 203, 525, 249 194,248,819 2~5,5~,®9 228,219,321 17,329,288 15,9\13,000 12,911,194 14,194,036 7,165, 272 143, 946, 655 36,467 $159,157,308 1958 Percent of Increase or (decrease) 3.S9 1.60 5.54 (4.68) (1.%) (1. 35) 00.08) (16.99) (l4.33) (10.81) 4.74 (8.39) (7.81) (3.22) 1 Represents data. for landline operations. Figures covering cable operations are included in tables beloW showing data of international telegraph ca,rriers. 2 Reflects estimated net reductions in Federal income tax liability of $1,768,000 and $2,132,000 in 1957 and 1958, respectively, arising from the utIlization, for iooome tax purposes but not for acoounting purposes, of a liberalized depreciation method recognized by sec. 167 of the Internul Revenue Code of 1954. Also reflects an estimated net reduction of $303,000 in 1%1 and an e,stimatcd net Increase o( $13,000 in 1\l58 in I<'edeml Income tax liability arising from the use in prior years of 5-year amortizil.tlon uuthori7.ed under sec. 168 of the Internal Revenue Code of 1954. a Includes domestic transmission of transoceanic and marine messages (about 9,724,000 in 1957, and about 9,544,000 In 1958). International Telegraph Carriers Financial and operating statistics relating to the U.S. international telegraph carriers for the calendar year 1958 are shown below as compared to similar figures for 1957. Statistics pertaining to radio telegraph and ocean cable carriers are also shown separately. International telegraph earnerS' 'rem Number of carriers. _ Book cost of plant (as of Dec. 31) _ Depreciation and amortization reserves • _ Net book cost of plant~~_ Message revenues: Domestic l • __~~._ Transoceanic______ _ • _ Marinc_ ___ ____ _ _ Total operating re"enues • _ Operating expense-s, deprcciatlon, and other operating revenue deductions _ Net operating revcnues _ Provision for Federal income taxes~_ Net Inoome • ._ Dividends declared 2 _ Number of revenue messages handled: Domestic J~~.~_ Transoceanic~~• _ MarinIL • _ Number of employees at end of OctobeL ._ Total compensation for the year__~~~• _ Percent of 1951 1%8 increase or (decrease) • • -----3.-34- $149,439,860 $154,438, 536 80,068,183 82,018,352 2.44 69,371,677 72,420,184 4.39 2,500,804 2,547,355 1.86 50,399.799 50,302,692 (.19) 1,931,272 J, 781, 143 (7.77) 76,845,286 77,281,2Il4 0.57 66,258,760 67,044,376 1. 19 10,586, ,')26 10,236,918 (3.30) 5,385,905 4,868.44,,) (9.61) 5,920,790 6,605,154 11. 56 1,783,610 2,120,202 18. 87 152,641 131,212 (l0.07) 24,143,486 23,348,O2!l (3.30) 1, Hi6, 680 l,104,111 (4.4.9) 11,502 11,182 (2.78) $41,993,931 $42, 855, 263 2.05 See notes after "Ocean cable carriers," 'llEPORT,OF ,THE FEDERAL :COMMUNICATIONS COMMISSION 127 Radiotelegraph carriers Item Number of c.'1rtiers _ Book cost of plant (as of Dec. 31) _ . __ Depreciation and amortization reserves _ Net book cost of planL _ Message revenues: Domestic I Transoceanic _ l\farine_ _ .-._ Total operating revenues ----c-------- ---- Operating" expenses, depreciation, and other operating reve- nue deductions._ Net operating revenues _ Provision ;for Federal income taxes _ Net income__ Dividends declared. _ Number o!reveuue messages handled: Domestic 3 Transoceanic. _ Marine_ _ _ Number of employees at end of October Total compensation for the year _ 1957 • $53', 115 ii20 21,287,387 31,828,033 2,306,364 27,196,393 1,931,272 41, 403, 043 33,378,493 8,024,5r,o 3,770,905 5,435,284 900,000 57,533 13, fi72, 370 1, 156, fi80 l 5, 40t $24, ll8, 8-4(J 1958 • $56,923,518 22,821,079 34,102,439 2,330,96t 26,705,538 I, 7S1, 143 42,216,032 35,240,210 6,975,82'.1 3,693; 445 4,1)69,90S 1,590,000 52,542 13,102,992 1,104,771 (5,270 $25, 127, 406 :Perc~ntot increa~e-(lr , (decrease) ----.-....-- 7. t7 7.20 7.15 1.07 (1. 81) (7.71) 1,9li ,~ 5.'.'S8 (l3.07) (2.06) (15.92) 76.67 ... (8.OB) (4.17) (4.49) (2.13) 4.18 Ocean cable carriers (inclUding Western Union cable operations) Item Number of carrlers " _ Book cost of plant (as of Dec. 31) _ Depreciation and amortization reserves_. 4 Xet book cost Qf planL __ Message revenues: Domestic 1. _ Transoceanic "__ Total operating revenues _ Operating expenses, depreciation, and other operating revenue deductions_ _ _ ~~V~;i~;~~V:J:~a~~~oome-taxes====== Net income. __ " _ Dividends declared 2 _ Number of revenue messages handled: Domestic 3 _ Tmn.soee.'luie. _ Number of employees at end of October _ Total compemation for the year _ Pcrcent 01 1957 1958 illcreasetJr (decrease) 3 3 $96,324. 440 $97,511),018 1.24 58, 78/}, 796 59,197,273 ,71 37,543,644 38,317,745 2,00 194,440 216,394 11.29 23,203,406 23,597,154 1.70 35,442,243 35,005,262 (1. (6) 32,880,267 31,804,166 (3.27) 2, 5tH, 97fi 3,261,096 27.29 1,1\15,000 1,175,000 (27.24) 485,506 2,035,246 319.20 883,670 530,2t12 (40.00) 95,108 84,730 (10.91) 10,471,116 10,24.5,036 (2.16) ·6,101 ·5.912 (3.10) $17,875,091 $17,7V,857 (.32) 1Includes revenues of 2 ocean cable carriers and the radiotelegraph carriers from the domestic transmissiou of transoceanic and marine messages outside of points of entry or departure In the enited States and rev- enues from domestic·c1assification messages (primarily Canadian and 1fexican). ' I All dividends declared by Western Unton Telegraph Co. hanl bccn reported In the table alxwe relating to the domestic landline operations of that company and are excluded from this table. IRepre.~entsdomestic-classification messages (primarily Canadian and Mexican). 4 Certuin employees of 1 radiotelegraph carrier and 2 oceau cable carriers serve more than 1 of tbc com panies. The amounts of compensation reported Cor euch of these companies ure after intercompany charges and credits. As a result, the number of employees and totul compensation shown are Ilot on the same basis, 128 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Common Carrier Applications Over 5,000 applications were filed with the Commission by common carriers during the fiscal year (exclusive of Alaskan and marine mobile). The following table shows the number of applications ac cording to class of service: 01... Pending Received Disposed of Pending June 30,1968 lune3o.1969 8 7 • • ~----------i I ------------ 3 3 _._--------- 533 "13 ------------ 651 ... 2 6, 110 6,036 4.' Domestic: Radio!ocilitlfJ8 Polnt-to-poJnt microwave radiostat1ons._~_________200 1 • . • _ ~~"(t~~~I:i~I-~~==:::::::::~=::::::C:::::::::::::::: -----~--___c_-I--- Total bl:oadC8St. • • '-I~==~..~I-~=~30~7~I-~~~;.I.~~~..; Safety anQ..speclal.radio servlces~.-----~_-_----__ 4fI .417 Common-l!8rryer .; •~~____ 11 !)() TotaL_~__ • c~-----------.:----I~--12O"-1---c"".:::.1----,-+---,- OonrnnerciaZ radio oPerator UOen8es Class of Ucense; , i Radiotelegraph: 1st class__ • ,--_~---_-, T _ 2d class____________________ _L -' c _ 3d class- _, J~_ Temporary Ihnlted, 2d class 1 , _ Radiotelephone: 1 ~~t~l~ss_·::======_=====t========-===i=========:--"---3d class '- 1~, __ Restricted permits 2 .,~< _ Aircraft authoHzations '_ - j~_ TotaL_,.~<~~_ Outstanding Outstandlnp; Increase or June 30,1958 June 30, 1959 (decrease) 6,396 6,376 (20) 9,611 .,""" •• 1,952 1,997 "8 1 (7) 61,739 65,196 3,4.57 45,216 4S;932 J,716 41,027 48,193 7,166 1,321,444 1,525,'558 204,lN 13,461 0 (13,461) 1,500,854 1.-705,913 218, 547 I These classes of licenses dlsoontlnued. , ThJs class of Hcense. issued for HfetJIIieo{'OpeJ'atof. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 147 FIELD ENGINEERING OFFICES AND MONITORING STATIONS A list of field engineering district offices and monitoring stations follows: District oJT1ce8 Address L 1600 Customhouse, Boston 10, Mass. 2 748 Federal Bldg., New York 14, N.Y. 3 1005 New U.S. Customhouse, Philadelphia 6, Pa. 4 400 McCawley Bldg., Baltimore 2, Md. 5 402 Federal Bldg., Norfolk lO,-Va. 6 718 Atlanta National Bldg.• Atlanta 3, Ga.; (snboffice) 214 Post Office- Bldg., Savannah, Ga. 7 312 Federal Bldg., Miami 1, Fla.; (mari:Q.e office) 409-410 Post Office Bldg., Tampa 2, Fla. 8 608 Federal·Bldg., New Orleans ·12, Ln. ;'(suboffice) 419 U.S.Court~ house and Customhouse, Mobile lO,Ala; 9 326 U.S. Appraisers Bldg,Hous~n11" Tex.; (suboffice) 301 Post Office Bldg., Beaumont, Tex. 10 Room 401, States General Life Insurance Bldg., Dallas 2, Tex. lL 849 South Broadway, Los 'Angeles 14, Calif.; (suboflice) 1245 7th Ave., Sall Diego, Calif.; (marine office) 826 U.S. Post Office and Courthouse, San Pedro, Calif. 12 323-A Customhouse, San Francisco 26, Calif. l~L507 U.S. Courthouse, Portland 5, Oreg. 14 806 lilederal Ofiice Bldg., Seattle <1,W~sh. 15 521 New Customhouse, Denver 2, Colo. 16 208 Uptown Post Oflice and Federal Courts Bldg., St. Paul 2. Minn. 17 3100I!~ederalOffice Bldg., Kansas City 6E, Mo. 18 826 U.S. Courthouse, Chicago 4, Ill. 19 1029 New Federal Bldg., Detroit 26,A~ich. 20~__ 328 Post Office Bldg., Buft'alo3, N.Y. 2L 502ll'ederal Bldg., Honolulu 13, Bawaii. 22 322-823 Federal Bldg., SanJuan 13, P.R. 23 53 U.S. Post Office and Courthouse Bldg.• Anchorage, Alaska; (sub- office) 6 Shattuck Bldg., Juneau, Alaska. 24- Room 106, 718 Jackson PI. NW., Washington 25, D.C. Primary Monitoring StatifJn Allegttn",Mich. Grand Island, Nebr. Kingsvllle, Tex. Millis, Mass. Santa Ana, Calif. Laurel,Md. Livermore, CaUf. Portland, Oreg. Powder Springs, Ga. Lanikai, Oahu, Hawall Secondary Monitoring Station Seal'sport, Maine Spokane, Wash. Douglas, Ariz. Fort Lauderdale, Fla. Ambrose, Tex. Chillicothe. Ohio Anchorage, Alaska Fairbanks,Alaska Research and Laboratory TECHNICAL RESEARCH Television Studies During the year, the Television Allocations Study Organization (TASO) completed much of its work and submitted its final repOIt to the Commission. Commission personnel participated in TASO meetings either as observers or as presiding officer, and FCC engi neers contributed technical material and otherwise aided in the work of several panels and committees. Work is continuing on a limited number of items. The Commission has studied the final report in connection with its consideration of TV allocations. The principal value of the TASO report is a collection of authori tative technical data on the characteristics of the various parts of the TV hroadcast system, including transmitting and receiving equipment, propagation effects, and human evaluaHon of the per formance associated with various signal and interference conditions. These technical data have been analyzed and applied to Commission purposes by deriving specific figures for the service ranges of TV stations in the presence of noise or of interference from other stations on the same or adjacent channels. Further useful data are expected from T ASO when its tests of directional transmitting antennas are completed in the near future. Additional applications of TASO data will be made as work progresses on specificTV problems. (See also "Broadcast" chapter reference to television.) Stereophonic Broadcasting In July 1958 the Commission, in docket 12517, requested com ments on several questions concerning additional use of multiplexing by FM broadcast stations to provide various forms of subsidiary communicaHons. Because of the widespread interest instereophonic programing revealed by the comments, and the close relationship of such programing to other forms of FM multiplexing, the scope of the proceeding was enlarged in March 1959 to invite comments and data directed specifically to stereophonic programing on a multiple basis by FM stations. These filings are due December 11, 1959. 148 REPORT OFTRE FEDERAL COMMUNICATIONS COMMISSION 149 There is also a growing interest in stereophonic progriuning by TV and AM stations. Several systems are being advocated. Some of these systems have been proposed in petitions to the Commission and have been employed in transmission under experimental authori zation. From the standpoint of the listening public, it is necessary that stereophonic transmission of programs not degrade the quality of reception of conventional broadcast. Since early 1959, the National Stereophonic Radio Committee (NSRC), which was established by the Electronic Industries Asso ciation (EIA), has been gathering data and field testing stereophonic program transmission and reception, and investigating other aspects of the subject. This information and the results of further technical studies to be made by the Commission will be used in considering technical standards for stereophonic broadcasting. Noncommunication Systems One of the noticeable trends in the type-acceptance program became apparent during the year with the extension of type acceptance to cover equipment operating in the aeronautical services. In addition to relatively conventional communications transmitters, modern com. mercial aircraft may carry an enormous amount of other electronic equipment, such as long-range radio navigation devices, various types of radar, tracking and computing instruments, anticollision and tele metering devices. They make use of the radiofrequency spectrum to transmit and receive intelligence of extremely complex and diverse nature. Simple design techniques and noncritical engineering stand ards for these equipments no longer suffice to preclude interference with each other and with the important message communication chan nels of the aircraft. Accordingly, as the type-acceptance workload involving these complex equipments increases, further studies are necessary to bring the present engineering and technical standards in line with both the requirements of present communication equipment and new devices. These studies should result in technical standardS which insure a maximum of protection from interference 'with a minimum of burden upon the manufacturer and operator of aeronau tical equipment. Patent Aspeels af Techn'ical Standards Teehnicalstandards promulgated by the Commission do not require the use of it specific equipment design, but merely specify the perform ance of the equipment. For example, the technical standards for AM broadcast stations require that their frequency be maintained within 20 cycles per second of the assigned frequency, but do not specify the design of the frequency-control apparatus. Accordingly, stations 526681~9----11 150 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION may, and do, use any of a variety of apparatus for maintaining frequency within the required tolerance. Although most such equipment has probably been the subject of patents, this is not considered detrimental to the public interest, par ticularly in view of the fact that the Commission's technical standards permit use of any apparatus design which will meet the Commission's performance requirements. Consequently, compliance with the rules is not limited to any single apparatus invention. In fact, this prac tice encourages competitive development of alternative kinds of ap paratus designed to meet the Commission's performance standards. As a result, the Commission has not encountered any situation in which the regulated services have been impaired due to exercise of patent rights. Conversely, no invention capable of meeting the per formance standards has been prohibited by Commission rules. Interfering Devices Parts 15 and 18 of the FCC's rules control such gadgets as openers for garage doors, ovens for cooking food, hair-removing devices, medical equipment, machines for "sewing" plastic raincoats, food sterilizers, etc. All these devices have one thing in common-they Use radio-frequency euergy to produce the desired end product. Since these devices have a large interfereuce potential, control is required. This widespread use of radiofrequency-using devices is not an over night phenomeuon. The Commission adopted the original regula tions for what is now part 15 as early as 1938, and for part 18 in 1946. The 1938 regulations were designed to control wireless record players and the first remote-control devices for radio receivers. Over the years, these regulations were extended to cover other control devices, to carrier curreut systems, and to wireless microphones. Today part 15 regulates receiver radiation, low-power communica tion devices (which include wireless record players, wireless micro phones, and radio-control devices), radiation from CATV systems, carrier current systems, and any type of electrical equipment which generates and radiates radiofrequency signals incidental to its operation. While part 18 has not expanded as broadly as part 15, the number of devices operated under part 18 has increased astronomically. The growing use of heaters is indicated in the following table based on a statement by the Subcommittee on Induction and Dielectric Heating of the AlE in docket 11442: REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 151 Number 01 industrial (RF) heaters sold Number of Total kilo- units watts Induction heaters: Sold before 1947_... . . . . ._~_4, 168 58,~ Sold alter 1947_ -..--_--- -----..-.-..•- __ --._--_--_..----_. ----.-"1 8.:-,'_"-1-__100--"-,-88<",,. TotaL. ._. ...._. ._. .... .._I~~;;,1~;;,96;;;2;,,1~~~1';;;9,;;;'2ff;;. DielectrIc beaters: Sold be(}re 1947 __ ._. . __ ._._..._. __ .. . . ....' 1,132 0,139" Sold after 1947 -._..._." __ .-- -.-_-.- A _ .-._.-••••••-- _ -.-.'_1 '':-'3_"--'1 26_,--,235-,- TotaL.. .. ._... . .._I~~"'8;;"4;;;87:+~~3;;;I,;;4~,. Total heaters sold. .._..~__.._.... . .... 19,449 191, 157 All industrial heating equipment is presently required to be certifi cated by an engineer in order to demonstrate compliance with the Commission's radiation limits, There is evidence, however, that this requirement is not satisfactorily met by many operators, particularly those in the plastics manufacturing industry, A project is presently under way to develop rules that will more firmly establish the respon sibility for valid certification of industrial heating equipment. In addition, industry groups are cooperating with the FCC in develop ing a more simplified field strength measurement procedure than is presently used in connection with certifying industrial heating equip ment, Such a simplification is expected to decrease the expense of performing field strength measurements, thereby removing a deter rent for complying with the Commission's certification requirements, Similarly, the problem of providing adequate protection to author ized radio services from radiofrequency-stabilized arc welders has not been resolved, Such devices are widely used when welding stainless steel or certain nonferrous metals such as aluminum, This type of welder generates radiofrequency energy by means of a spark gap and the radio emissions produced are very broad in frequency, Continued study by Government and industry has not yet evolved a satisfactory method of suppression that will materially reduce radiation below 10 microvolts per meter at 1 mile, It appears that radiofrequency-stabilized arc welders will require extensive basic research before further interference safeguards are forthcoming. Other devices regulated by part 18 are medical diathermy machines used for therapeutic purposes; ultrasonic aids both for therapeutic and industrial purposes (cleaning, cutting brittle and ultrahard sub stances, boring irregular openings); and a variety of miscellaneous items, This part is also applicable to scientific devices that use radiofrequency energy such as linear accelerators or cyclotrons, 152 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION RecelverRadiation The Commission's program to curb receiver radiation, which is directed basically at TV receivers, is only 4 years old. In view of the many older, noncomplying sets still in use, this program must be considered a long-range effort. Although some effects are already apparent, its full benefits will be realized only after the noncomply ing receivers are retired from service. Receiver radiation regulations must be applied to the user and hot to the manufacturer in accordance with the Commission's author ity under the Communications Act. However, the user is not in a position to reduce his receiver radiation to a noninterference level. By its very nature, this characteristic must be built into the set, and that is most readily accomplished at the design stage and during manufacture. The Commission has received excellent cooperation from the majority of receiver manufacturers who have voluntarily undertaken to build complying sets. The small number of manufacturers who have not participated in this program still present a problem. Experimental Radio Services Part 5 of the rules provides Experimental Radio Services (other than broadcast, which has its own experimental category) for the experimental uses of radiofrequencies to aid (1) basic research in radio and electronics, and (2) development and testing of new trans mitting equipment and techniques. Propagation studies of the upper atmosphere in connection with the International Geophysical Year are being continued by universi ties and research foundations. Much useful information has been revealed by the technical data thus obtained. Experimentation in the field of radionavigation and radioposition ing is being accelerated. The answer to the accurate all-range radio navigation problem has not yet been found. Collision avoidance techniques for the protection of both airplanes and automobiles are being developed along various lines. An anti collision device for use on automobiles has been announced by one of the large manufacturers. In addition, automatic electronic guidance systems for high-speed automobile traffic have been tested by at least two manufacturing companies. As experimental operations expand,the amount of harmful inter ference mounts. During the fiscal year, several cases of disruptive interference resulted from high-powered experimental transmitters. Greater efficiency in usage of the frequency spectrum is being a(} complished through experimental development of single sideband and split-channel techniques. High-speed data transmission systems give REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 153 promise of replacing the slower methodS of the past. More and more communication at higher and higher speedS is demanded inthis atomic age. Today's methods are quickly made obsolete by tomorrow's tech nological developments. Increasing radio and electronic developments are being carried on by colleges, research laboratories, and industrial organizations. Gen erally, these activities are conducted under contractual agreements with military agencies, and often carry the highest degree of urgency and secrecy. There are a number of recurring problems associated with the experimental services, some of which are: (1) No frequencies are assigned to experimental stations as such. Frequencies assigned to other services are used, and there is increasing difficulty in finding frequencies on which developmental and testing operations can be conducted with out causing harmful interference to other services. (2) Applicants should not develop equipment on frequen cies which would not be available for this use if the develop ment is successful. Consequently, applicantsshoul~exercise much more care in selecting the frequencies requested for experimentation. (3) Equipment to be used by the military services should be designed for use on Government frequencies since that will be their ultimate location. In some instances individual military agencies have permitted civilian organizations to use non-Government frequencies for development of equipment intended for Government frequencies. (4) Applicants have a tendency to apply for special tem porary authorizations for projects which are of a continuing nature and should be conducted under a regnlar license. This causes delay because many of them must be returned to the applicants for proper submission. E",perimenta~radio services Formal Informal Number Formal Informal Number Fiscal year applications applications of stations Fiscal year appUcations applications ofstatlons received granted licensed received granted licensed 1952-.__.~_.__ '" 140 '" I 1956__________ 1,507 64' 716 191)3..________ 1,05.5 168 '44 195L________ 1,824 602 788 1954 __________ 97' 300 686 1958__ •_______ 2, 050 762 834 195IL..______ 1,447 '''' 626 1959__________ ~026788 891 Type Acceptance of Transminers Type acceptance by the Commission of transmitters for operation in the various radio services affords a practical method of ascertaining that they are capable of performance in accordance with the Commis- 154 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION sion's technical standards. Type acceptance is granted after review of test data furnished by the manufacturer (or the applicant for li cense) shows the transmitter to be technically adequate. During the past several years, type-acceptance requirements have been incorpo rated in the rules for most of the radio services. A major effect of this procedure is the reduction of interference between stations due to out-of-channel radiations. As a result, more stations can operate in the crowded spectrum than would otherwise be possible. Type-accepted transmitters are listed in the "Radio Equipment List" and supplements issued from time to time. This list is referred to by the Commission in connection with licensing and station inspec tions, by licensees and applicants, and by manufacturers and prospec tive users of transmitters. In conjunction with this activity, the Commission maintains a central file containing data on all types of transmitters and other equipment which has been type accepted, type approved, or for which data has been filed for reference purposes. These data are a prime source of information concerning equipment capabilities in connection with licensing and rulemaking. The data. are also available to other Government agencies. Type-a.cceptance applications have increased in number as this pro cedure has been extended into additional services. On January 1, 1959, type acceptance became a requirement for all new ship radiotele phone installations operating below 30 megacycles. On July 1, 1959, type-acceptance requirements became effective for new installations in the aviation radio services. As a result of this expansion of type acceptance requirements and the development of new types of trans mitters for use in other services, the type-acceptance work increased during the past year as is indicated in the following table. Equip. Total ments Increase manu- Increase type "nce laeturers since Frequency range Service accepted June 30, M or June 30, Power range (megacycles) M or 1958 June 30, 1958 Juneao, 1959 1959 --- --- TV broadcasL_______ 39 13 • 1 0.001 to 100 kw___~ .0.54 to 890. Aural broadcast_______ 261 18 18 1 O.Olto 50 kw••.•"1 0.54 to 108. N onbroadcast. ____ • ___ 1.640 200 ,34 55 0.032 w to 6.5 kw._ 1.6 to 13,200. --- --------- TotaL__________ 1.940 321 141 67 0.032 w to 100 kw_. 0.54 to 13,200. In addition to the increases reflected in the above table, the applica tions for type acceptance received represent an increase of about 6 percent over fiscal 1958. Radio Wave Propagation Research Although major difficulties which arose during the year dealt with questions concerning TV station allocations, notable progress was REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 155 made in the application of new information to service and interfer ence problems in all types of radio communication. The rapidly developing and constantly changing economic picture of the TV industry requires that the best available information on the transmission properties of the wave bands allocated for this pur pose be applied in the formulation of rules and standards for the serv ice. Where satisfactory information was not available, additional information was obtained by (1) organizing projects for investigation and measurement utilizing the facilities of the Commission, (2) re questing industry cooperation through engineering committees or ganized for this purpose, and (3) developing the theoretical aspects of the problems. Today's frequency allocation standards for broadcasting were based, to a considerable extent, upon wave-propagation information obtained from field-strength recordings made at the Commission's monitoring stations during the last 25 years. In recent years, the advent of VHF and UHF TV has provided means for developing information which could be obtained only from actual transmission. During the last fiscal year, approximately 18 station-years of field-strength record ings of UHF stations were analyzed and studied. This material was used in cooperation with the Television Allocations Study Organiza tion (TASO) in the formulation of new UHF propagation curves. Additional field-strength recordings made of seven TV and FM sta tions during the year are being studied. These measurements were combined with information obtained from various sources for the de velopment of a revised set of VHF propagation curves. Factors in volving these measurements, which are vital in specifying channel and station separation requirements, vary with time and season, with geographic location in different regions, and with terrain and topog raphy in local areas. Certain segments of information relating to the application of prin ciples developed in this work have been resolved, and the results have indicated the nature of other segments which are open for future investigation. Examples are (1) the need for information concerning the efficiency of directional antennas for TV and other radio services, and (2) the need of practical methods for predicting service coverage with greater accuracy for TV and other stations and for contemplated changes in the allocation rules. Detailed studies are being made of selected areas served by several TV stations using measurements furnished by TASO. An effort is being made to devise methods for predicting a station's service range with greater accuracy in areas characterized by smooth or rough ter rain or in built-up city areas. Some improvement has been achieved in the accuracy with which the quality of broadcasting service may 156 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION be predicted, and work is continuing with the goal of obtaiuing greater accuracy. Various proposals of new systems of aural and video broadcast were investigated in relation to wave-propagation effects. One was for a special type of single sideband operation, in which it was expected that certain types of interference due to the combining of groundwave and skywave components would not cause the distortion usually prevailing with regular types of trausmission. Another proposal consisted of placing several TV transmitters at spacings considerably less than those specified in the Commission's rules, to replace a single high-power station. With this system, called "polycasting" or "multicasting" de pending upon the number of frequency channels used, it is possible that greater allocation efficiency and greater economy in transmitter costs may result. Recent studies have revealed the general requirements for a multicasting operation, and propagation experiments are being con ducted by the industry in order to obtain further information. The field-strength "sunspot cycle" recordiug program was termi nated January 1, 1959, after a year of extremely high-sunspot activity, to complete two ll-year sunspot cycles of these measurements on AM broadcast stations. LABORATORY The Commission's laboratory is located near L ..urel, Md. There a small st..ff makes tests on equipment and communication systems in support.ofprograms carried on by the Commission. Type Approval. of Equipment One class of equipment tested by the laboratory is composed of non communication devices which perform their own intended functions at the risk of causing interference to licensed radio and TV services. These devices include medical diathermy and ultrasonic equipment, epilators, electronic neon signs, electronic ovens for the home, and Commercial ultrasonic units; shipboard telegraph transmitters, life boat transmitters, arid automatic alarm receivers which are important :for safeguarding life and property at sea. These devices are tested from the standpoint of assuring maximum reliability of operation un der adverse conditions. Laboratory-approval tests are also made on new models of monitoring equipment used in aural and TV broadcast ~tationsto assure that maximum program quality is obtained with minimum interference to other stations. Another class of equipment tested is that used without the supervision of licensed operators. This category includes marine radar and citizens' radio equipments. Class of equipment REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 157 8um~of tYfH?approval testing actiVity during 1tscalllear Number Number Nwnoor Nwnoor of sub- of type Class of equipment of sub- of type missions approvals missions approvw 1000test granted for test granted ------1--1---11------1-- Shipboard auto alamL _ Shipboard radar _ Shipboard radiotelegraph transmitter _ Shipboard auto-alarm keyer__ TV brl)fUjcast translator _ TV broadcast monitor _ ~---------8- 3 _ 1 ._ 5 3 2 _ AM broadcast modulation monitor . _ Medical dlathermy _ Medical ultrasonIc _ Epflator • _ Neon sign, _ Citizens radio transmitter _ 5 2 10 5 2 3 2 2 7 5 2 1 Study of New Systems and Devices Laboratory studies durjng the year iucluded FM broadcast multj. plex, iucluding aspects of stereophonic problems in both FM aud AM; interference between radar and TV statjons; detrjmental effects to automatic alarms aboard ship from Government statjons operatjng in the band 475 to 535 kilocycles; measurement of interference from portable receivers and heariug aids; also measurements in counection with problems of both UHF and VHF TV boosters and repeaters. Radio Propagation Measurements The laboratory provides the equipment techniques and calibrates the field-strength recorders which are located in a number of the FCC monitoring statious. During the year, it made calibration tests at three Illouitoringstations, operated several UHF signal recorders, and placed in operation an automatic devjce for recordjng spectrum oc cupancy between 1250 kilocycles and 20 megacycles. Coustruction of improved models for iustallation at other locations js underway. Development and Calibration of Field EquiPJTIent Two specially modified frequency spectrum analyzers were de livered to the monjtoriug stations, as were njne receivers specially modified to be used with the spectrum analyzers. Six field-strength meters aud six signal generators were repaired and calibrated and returned to the field offices and monitoriugstatious. Frequency Allocation and Use NATIONAL FREQUENCY ALLOCATIONS Joint OCOM-FCC Long-Range Allocation Planning The FCC and the Office of Civil and Defense Mobilization are con ducting joint long-range planning to prodnce, as the initial objective, an improved pattern of frequency allocations which could be im plemented within the next 10 to 15 years. This study, which is on a continuing basis, seeks ways and means to accommodate expansion and growth in the use of radio, to simplify allocations for each use of radio including TV, and to provide for reasonable transition periods as necessary. It represents a new approach in Government planning for the long-term future in the field of frequency allocations. Here tofore, such studies have been conducted independently by the respec tive offices with conclusions coordinated thereafter. The technical study group, which includes representatives of mem ber agencies of the Interdepartment Radio Advisory Committee (IRAC), plans to give first attention to allocations between 50 and 1000 megacycles in view of the difficult problems concerning that re gion of the spectrum. It will consider requirements of the broadcast ing, land mobile, aeronautical mobile, maritime mobile, radioposition ing, radionavigation, and earth-space satellite services based on both Government and non-Government data which the group has requested. Possible Reallocation of VHF Government Frequencies The joint OCDM-FCC study is particularly significant since the various plans for the possible reallocation of bands for TV broadcast depend on whether a wholesale readjustment of VHF spectrum space would be feasible and in the public interest. The Commission is cur rently exploring with the Government (OCDM) the possibility of reallocating Government frequencies above 216 megacycles to non Government use. It is hoped that a definite determination can be made in the near future. However, in the event additioual VHF frequencies became available for non-Government use, the Commission would have to consider the needs not only of TV but of other vital radio services seeking addi tional space in this part of the spectrum. The requirements of these 158 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 159 services are currently being examined by the Commission in its gen eral review of spectrum allocations between 25 and 890 megacycles. General Spectrum Studies Extensive consideration has also been given to extremely complex engineering problems involved in various congressional proposals for a general study to bring about the most efficient utilization of the radio spectrum. This requires evaluations of existing and future fre quency requirements of all radio services. Also, it entails analysis of existing govermnental methods for handling the Nation's frequency allocations, with special attention to Govermnent and non-Govern ment division of spectrum space. Other National Frequency Allocation Actions and Problems Fiscal year 1959 saw an unusually large number of changes in na tional frequency allocations. Some of these were necessary to pro vide continuity of service in the aftermath of the Commission's action of April 16, 1958, in reallocating, for national defense reasons, several important non-Government segments of thc radio spectrum for Gov ernment use. Others were made to meet current needs in anticipation of international acceptance of the U.S. proposals to the 1959 Inter national Telecommunication Union (ITU) Radio Conference. Still others were to cope with the burgeoning frequency demands of radio services already authorized by the Commission or coming into being. The Commission is continually faced with national frequency allo cation problems relating to (1) the establishment of new radio services for which a public interest showing can be made, (2) the day-to-day accommodation of new assignments to meet the increasing frequency demands of existing radio services, and (3) making the most effective nse of today's basic table of frequency allocations. How did these problems develop and what is the Commission doing to resolve them! When the FCC came into being 25 years ago, for all practical pur poses there were no international frequency allocations above 28 mega cycles simply because radio developments had not progressed beyond that point. U.S. proposals to the ITU conference would expand that upper limit to 40,000 megacycles, representing a usable spectrum 1,430 times greater than that allocated internationally in 1934. Although the Commission's rules in 1934 viewed the then total spectrum as extending in frequency from 10 kilocycles to 500 mega cycles, inclusive, its current frequency allocations include frequencies to above 30,000 megacycles. Until recent years, this extension per mitted a phenomenal growth in the number of users of the spectrum. As bands allocated to the various services became overcrowded or as 160 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION new developments occurred in higher bands, families of bands were allocated to those services. However, because of economic and other considerations, plus the fact that propagation characteristics of higher frequencies become more and more like those of light beams, the greatest demand for frequencies by non-Government users remained below 1000 megacycles. Hence, expanding services must now rely upon more efficient utilization of spectrum space, rather than an ex panding spectrum, to meet the bulk of their needs. There are approximately a dozen petitions for rellocation of spec trum space on which the Commission has been unable to take affirma tive action because of congestion in the bands which might otherwise be made available. These petitioners can be satisfied only by taking spectrum space from other non-Government services or by acquiring additional space from Government services. The advisability of fol lowing the first course is one of the results to be expected from the Commission's overall spectrum inquiry. Five separate allocation changes were made during the year to accommodate the needs of growing services. Three of these were further steps to implement the "split" channel program begun in fiscal 1958 when technological advances in equipment permitted halving the separation between assignable channels. In the other 2 instances, allocations were finalized for aeronautical telemetry at 1435-1535 megacycles and for aeronautical doppler navigators at 13,250-13,400 megacycles in anticipation of ITU acceptance of those bands. Many opportunities present for adding additional services, on a geographical basis, to the existing allocation structure without deg radation of service. Two examples were changes to permit interna tional point-to-point operations in the band 952-960 megacycles in the Virgin Islands and Puerto Rico, and use of tropospheric scatter for public correspondence between Florida and the Bahama Islands at 2110-2200 megacycles. A further extension of this philosophy has been applied to a unique situation occasioned by the advent of radio astronomy-a service in which the participants are unlicensed since they are interested in receiving rather than transmitting radio signals. A National Radio Astronomy Observatory (NRAO) has been constructed at Green Bank, W.Va., a site selected because of its relative freedom from manmade radio noise and the sparsely settled surrounding area. In order to protect the reception there of extremely weak electromagnetic radiations of extraterrestrial origin, the Commission requires that, within 60 miles of the observatory, most new stations (and existing stations for which certain technical modifications are desired) c0 ordinate their proposed operations with the NRAO. This is the first REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 161 instance of protection being given to signals other than those froD). manmade radio apparatns. INTERNATIONA~FREQUENCY ALLOCATIONS International Radio Conference, Geneva 1959 Fiscal 1959 was of particular importance in the field of interna tional freqnency allocations, having seen the culmination of about 2 years of preparatory work to develop the U.S. allocation proposals for presentation at the 1959 radio conference at Geneva. The pre paratory groups, working under the aegis of the Department of State and representatives of industry, the Commission, and other interested Federal agencies, drafted a tentative proposed international allocation table ranging from 10 kilocycles to 40,000 megacycles. The Commission's workload in this preparatory work was excep tionally heavy, because this is the first world conference since 1947 to consider a complete revision of the international radio regnlations and, as a key member of the preparatory study groups, the FCC participated actively in every subject under consideration and every phase of the other preparations. This undertaking is of vital concern to all radio users in the United States, particularly in view of the fact that actions taken by some 100 foreign administrations at the confer ence will affect the entire telecommunications field. It is important, therefore, that the U.S. proposals be fundamentally firm and prac ticable, and acceptable to both Government and industry users of radio. In its dqcket 12263 proceeding, the Commission undertook to keep its licensees and the general public informed of the general nature of the U.S. proposals. The 75 responses were studied carefully to deter mine if, and in what ways, these proposals could be improved upon. Separate teams of U.S. experts traveled throughout the Caribbean South American and European regions explaining the proposals, answering questions, and evaluating the reactions to the proposals. Additionally, formal and informal meetings were held in Washington, Ottawa, and London to discuss matters of mutual interest and resolve major differences. These exchanges permitted necessary revisions to be made well in advance of the conference. In addition, the Commissionprepared material for the Department of State to distribute to the preparatory study groups and·the Tech nical Coordinating Committee, and to the ITU for translation into various foreign languages "for the member countries. In further preparation f'lr this session,.the Ninth Plenary Assembly of the International Radio Consultative Committee (CCIR) was held in Los Angeles during April1959 for the purpose of obtaining the 162 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION recommendations of international experts on various technical prob lems which affect practically all users of radio. Other International ·Conferences During the year, the Commission prepared for 26 other intern.. tional conferences, and some of these necessitate continuing followup work. It furnished 4 chairmen, 3 vice chairmen, and 42 other members of delegations. These international conferences are under Department of State sponsorship. INTERNATIONAL FREQUENCY COORDINATION The importance of the Commission's role in international frequency coordination matters increases with the tremendous expansion of radio throughout the world. The frequency situation becomes more critical because more and more radio operations must be squeezed into the same radio spectrum. The need for frequencies is not limited to new radio stations being authorized throughout the world, but is shared by established radio stations which are expauding. It is important that frequencies used by the Commission's licensees are adequate to handle the service they wish to render and remain relatively free of harmful interference from other stations operating in the same part of the radio spectrum. In keeping with this principle, several international frequency assignment plans for the aeronautical and maritime mobile services, between 2850-23000 and 4000-23000 kilocycles respectively, emerged from the Extraordinary Administra tive Radio Conference, Geneva 1951. In addition, the conference adopted regional plans for all radio services operating below 4000 kilocycles. These plans, based on the 1951 concept of requirements, provided for both present and future operations. However, in actual practice, many of the contemplated operations did not materialize, others not planned became necessary, and some operations of that time have since been discontinued. Further, some of the planned assignments were found incompatible and required alteration. Areas adjacent to the United States-Canadian border are particu larly troublesome since many operations in close proximity to each other are authorized each year by both Governments. Absence of extensive interference from this multiplicity of stations is due, pri marily, to their longstanding cooperation in such matters. A mutual 1950 procedure provided ground rules for coordinating assignment of frequencies in certain bands, specifically VHF and UHF, for use in the sensitive border areas. Due to the ever-increasing number and variety of uses of radio in both countries, ithasbeen necessary to amend that procedure on several occasions. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 163 The extent of this United Stotes-Canadian relationship is demon strated by the fact that almost 2,400 coordination letters and telegrams were exchanged during the past year. This represents an increase of almost 100 percent over the previous year. The Commission also exchanged many communications with other nations for the purpose of avoiding harmful interference either to or by U.S. operations. These exchanges constitute one means of pro viding a degree of harmony or compatibility on the part of users of radio in different countries with resultant benefits to U.S. users. INTERNATIONAL INTERFERENCE AND INFRACTIONS The importance of resolving radio interference is recognized uni versally since it can affect safety of life and property at sea or in the air and the ability of an operating company to provide service. Accordingly, article 14 of the radio regulations annexed to the Inter national Telecommunication Convention (Buenos Aires, 1952) pre scribes the procedures to be followed whenever international harmful interference is experienced. The Commission is recognized inter nationally, within the terms of that treaty, as an administration of the United States for radio matters. Each case of harmful interference has its own peculiarities so that the actions required must be carefully evaluated to avoid any relin quishment of the licensee's right to operate. Therefore, these cases cannot be handled on a production-line basis. Further, the volume of cases has little relation to the actual work required, inasmuch as one case may need much more attention than another. Also, resolution of a case must be mutually satisfactory to both administrations. Accordingly, the technical problems are coordinated between the Com mission and the foreigu technical officials concerned. The assistance of the Department of State is solicited whenever deemed advisable. The service rendered by the Commission frequently means whether an aircraft or ship station is able to maintain reliable service. In other cases, international communication between fixed points is involved and a disruption of service can affect official and private business. More important, interference is sometimes caused on frequencies used worldwide for distress, search and rescue, and other emergency communications. Of 310 cases arising during theyear, 258 were resolved satisfactorily and negotiation with foreigu administrations continues on the re mainder. In addition, the Commission forwarded 72 reports of harm ful interference to the U.S. Government agencies alleged to be responsible and, when requested to do so, collaborated in correspond ence addressed to the complaining foreign officials. 164 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION The COnmllssioil also participates, under Article 15 of the Inter national Radio Regulations, in a closely allied program to prevent the development of C3S6S of international harmful interferenCll. Essen tially, it provides for observing and reporting improper technical operations by foreign radio stations. In this way, many potential cases of harmful interference can be avoided with mutual benefit to allofthecountriesconcerned. INTERNATIONAL FREQUENCY USAGE DATA The Commission furnished approximately 91,000 monitoring ob servations to the ITU for publication in the latter's "Summary of MonitoringInformation Received by the IFRB." The summary provides valuable types of information regarding frequency stability, emissions in use, areas where transmissions are received and their relative sigual levels, etc. Also, it can be used as a guide to determine if stations are actually using their frequencies at the times indicated, especially during certain portions of the year or periods of sunspots. In other cases, the data have helped radio users to bring their operations into conformity with the interna tional frequency allocations. The Commission made recommendations to the ITU to improve the quality and usefulness of the data which resulted in the summary now being published monthly rather than quarterly, with an accom· plished saving of over 2 months in time with respect to printing and distribution. The program is a cooperative effort participated in by about two dozen countries, SO that the cost to anyone is relatively small in consideration of the results obtained, particularly since the monitor ing stations of any .single nation cannot effectively cover all areas, of the world. NATIONAL FREQUENCY COORDINATION The ever-increasing demand for frequency space has resulted in an excessive frequency coordination workload. This condition has created two particular problems: (1) The requirement for numerous phone calls and man-hours for informal coordination of proposals, and (2) the extremely heavy administrative load imposed by the monthly FCC-Government meetings necessary for formal action. The probability of harmful interference to established radio servo ices is always present when a new frequency is assigued. In order REPORT OF THE FEDERALCO~UNICATlONSCO~SSION165 to minimize this condition, all proposals for new or modified domestic radio facilities are coordinated between Government and non-Gov ernment nsers when an engineering study indicates that some conflict may exist. If this informal coordination proves successful, Govern ment and non-Government proposals are submitted to a joint FCC Government Committee (FAS/IRAC) for final action. This joint body is representative of the major Federal users of radio. The Com mission, while not a member, serves in a liaison capacity representing the non-Government interests. The seeming solution to the first problem would be a private-line teletype connecting the major Government agencies involved, or some new system involving record communications. Such a system wonld not only result in great savings in time for all but, equally important, would provide a written record of all agency comments. To this end, a time study is now being conducted and, if the·finding warrants, plans will be made accordingly. Due to the increase in applications, monthly F AS/IRAC meetings have required additional time to act on the now 1,200 to 6,500 agenda items. Where 2 days used to be sufficient, the workload now requires 3 to 4 days of meetings. This, coupled with the preparation needed for such a session, is extremely time consuming and outmoded. Since all agencies face this common problem, they are now engaged in streamlining theprocedures. NATIONAL FREQUENCY LISTS During the first part of the fiscal year, the compilation, printing, and distribution of the Commission's frequency list became an un wieldy and costly problem. So a new system was inaugurated. The frequency list had been printed in frequency order, consisting of several volumes totaling over 4,000 pages. It was decided to break it up in smaller "service" volumes; that is, broadcast, aviation, police, etc., stations were grouped together in their own separate publica tions. This reduced by more than half the previous printing of well over half a million pages semiannually. The Commission received mounting requests from industry groups and others who desired to obtain one or more copies of these lists. Since the Commission is unable to distribute these lists, arrangements were made with industry for their publicll;tion on a cost basis to all those interested. 525681--59----12 166 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION STATISTICS Frequency coordination actions Flsqall958 Flscall959 Percent In"'.... Formal coordinatloiL____________________ _ . _ Experimental _ Informal coordinatIon . Broadcast~•__ ••• _ 6,400 1,127 1,700 102 6,800 1,504 2,350 135 7 25 40 " Frequency a8sigments processed Fiscall9S8 FJsca11959 Authorizations processed.. _ International notlficatiorUL~_ Ship notillcatlons to ITV____ _ ._. •. I As of June 5, 1959. 45,304 46,945 15,458 150,741 133,189 121, 601 Appendix ELECTRICAL COMMUNICATION MILESTONES Early Communication The earliest method of distance communication was by runners who carried verbal or written messages. After man domesticated the horse, riders were able to convey messages faster and farther. For signaling purposes, primitive peoples used drums, fire, and smoke. Torches and fire towers figured in the Greek and Roman military campaigns. Agamemnon sent the news of the fall of Troy to his wife by flares along the way. Cyrus, king of the Persians, sta tioned men with strong lungs on hilltops to relay orders through hide ~egaphones.During the Crusades, Saladin dispatched messages by pigeons. The ancients also employed burnished metals to reflect the sun's rays for daytime signaling. Invention of the mirror brought the heliograph. Semaphore systems which involved the use of supports with movable arms likewise aided visual code communication. Napoleou directed troop movements with such a device. Signaling with flags by day and by flashing lights· at night has long been in vogue. For lack of speedy communication, Andrew Jackson fought the British at New Orleans after peace had been reached in the War -of 1812. Communication Developments The colorful pony express required lOlh days to carry mail from St. Joseph (Mo.) to San Francisco. Trains have crossed the conti nentin2lh days and jetplanes in3'4 hours. Before the advent of the railroad, it required 44 hours for stage coaches to bring news from the National Capital to New York. Ex press riders cut this down to 20 honrs. Trains now do it in 3% hours. A jet plane has made the same trip in less than half an hour. In 1492 it took 70 days for Columbus to reach the New World. Centuries later American clipper ships· crossed the Atlantic in 2 weeks. Steamships have done it in 3'4 days, and jet passenger planes now span that ocean in 6% hours. 167 168 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION However, telephone and telegraph are able to bridge the continent or sea almost immediately. At the turn of the century, radio was confined to wireless telegraphy, largely for marine purposes, and code communication was possible for comparatively short distances. Today radio has been put to many aural and visual communication uses on the land, on the sea, and in the air, including communication with objects in outer space. Wire Telegraph Invention of the steamboat and locomotive reduced greatly the time element in communication. But it remained for the telegraph to strengthen our national life and unity. The principle of the electromagnetic telegraph was developed by Samuel F. B. Morse. While a professor of arts and design at New York University in 1835, he proved that signals could be trans mitted by wire. As is the case with many notable inventions, he had difficulty in arousing interest. He gave a public demonstration in 1838, but it was not until 5 years later that Congress appropriated $30,000 to construct an experimental telegraph line from Washington to Baltimore. In early 1844, Members of Congress witnessed the sending and re.ceiving of messages over a part of the line. Before the line had reached Baltimore, the Whig Party held its 1844 national conven tion there and, on May 1, nominated Henry Clay. This news was hurried to Annapolis Junction (between Washington and Baltimore) where Morse's partner, Alfred Vail, wired it to the Capital. This was the first news dispatch carried by electric telegraph. "What hath God wroughtI" sent by Morse from the old Supreme Court chamber in the U.S. Capitol to his partner in Baltimore, officially opened the completed line on May 24, 1844. Three days later the Democratic National Convention met at Balti more. Van Buren seemed the likely choice, but James Polk won the nomination. When this news was telegraphed to Washington, skeptics refused ·to believe it. Only after persons arriving by train from Baltimore confirmed the report were many convinced of the telegraph's value. Morse and his associates obtained private funds to extend their line to Philadelphia and New York. Small telegraph companies sprang up in the East, South, and Midwest. Dispatching of trains by telegraph started in 1851. The corporate body now known as Western Union commenced business in that year. It built the first transcontinental telegraph line in 1861, mainly along railroad rights of-way. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 169 The telegraph provided speedy communication at the time the West was being opened. It aided in the extension and operation of railroads. Side by side, the iron rail and iron wire pushed over plain and through wilderness to make new settlements possible, and to bring regions into closer contact. This association of telegraph and railroad built up communities, opened markets, and aided commerce. The original Morse telegraph printed code on tape. However, in the United States the operation developed into sending by key and receiving by ear. A good Morse operator could transmit 40 to 50 words a minute. Automatic transmission, introduced about 1914, handles twice that number a minnte. In 1913 Western Union developed "multiplexing" which made it possible to transmit eight messages simultaneously over a single wire (four in each direction). "Teleprinter" and "teletypewriter" ma chines started to come into use about 1925. "Varioplex," introduced in 1936, enables a single wire to carry 72 transmissions at the same time (36 in each direction). High-speed switching systems date from 1937. Two years later Western Union introduced the first of its automatic facsimile devices. Until 1877, all rapid long-distance communication depended upon the telegraph. However, the advent of the telephone in that year bronght rivalry. Patent litigation between Western Union and the infant telephone system was terminated in 1879 by an agreement which largely separated the two services. In 1881 the competitive Postal Telegraph system entered the field. For economic reasons, Postal was merged with Western Union in 1943. The result is that today only one company-Western Union Qffers a nationwide telegraph service. There area few independent telegraph companies, but they are small and mostly serve railroads Qr particular industries in limited areas. ,Ocean Cable Telegraph In fathering the telegraph, Samuel F. B. Morse also pioneered in submarine telegraphy. Ocean telegraph cable is, in effect, a sea going extension of the land telegraph system to link islands and continents. In 1842, over an insulated copper wire submerged in New York Harbor, Morse demonstrated that electrical impulses could be sent under water. It remained for the perseverance of Cyrus W. Field to make the submarine cable practical. Transoceanic cable service was accomplished after many disappointments. With capital obtained from private subscriptions in New York and London and, in part, appropriated by the British and United States Governments, an attempt was made in 1857 to lay a cable under the 170 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Atlantic Ocean. The cable broke after 335 miles of it had been payed out by a ship operating from Ireland. In June the following year, another attempt failed. Not daunted, these pioneers succeeded in laying the cable the following month. But it soon became inopera tive. Another cable-laying effort, in 1865, proved futile. On July 27, 1866, the steamship Great Eastern completed laying a new cable from Valentia, Ireland, to Heart's Content, Newfoundland, for the Anglo-American Telegraph Co. Returning to mid-Atlantic, the ship located and raised the cable used in the 1865 attempt, spliced it, and extended it to Newfoundland, where it was landed on Sep tember 8. Thus, America and Europe were linked by two cables. Other ocean cables followed. Cable communication did for the linked continents what the land telegraph accomplished domestically. International commerce was stimulated and the exchange of news became a matter of minutes instead of weeks. Ocean cables were first operated by manually repeating the mes sages along the route. In 1921 "regenerators" were developed which permit direct transmission between terminals. Less than 300 letters a minute could be sent over the original transatlantic cable. Mod ern "permalloy" cables have a capacity of about 2,400 letters a minute. Wire Telephone If 'I can get a mechanism which willnwke a eurrent of electricity vary in its intensity, as the air varies in density when. a sound is passing through it, 1 can telegraph any sound, even tke sound 01 speeCh. So declared Alexander Graham Bell in 1875 while experimenting with his "harmonic telegraph". On June 2 of that same year, by fashioning a makeshift diaphragm, this teacher of deaf mutes dis covered that he could hear over a wire the sound of a twanging clock spring. Nine months later-on March 10, 1876-Bell transmitted the first complete sentence heard over a wire. What he said was, "Mr. Watson, come here, I want you i" It was received by his associate, Thomas A. Watson, in an adjoining room of their tiny Boston laboratory. U.S. Patent No. 174,465, issued to Bell in 1876, became recognized as the "most valuable patent." Yet early efforts to popularize the telephone met with disappointment. Though people paid to hear Bell lecture on "the miracle discovery of the age," for a time they seemed unaware of its possibilities. However, the year 1877 witnessed erection of the first regular telephone line-from Boston to Somerville, Mass. At the close of 1880 there were 47,900 telephones in the entire United States. Tho REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 171 following year brought telephone service between Boston and Prov idence, and New York and Boston were connected in 1884. Service between New York and Chicago started in 1892, but not until 1915 was transcontinental service by overhead wire inaugurated. Early telephones were leased in pairs. The subscriber had to put up his own line to connect with another listener. The first switch board was set up in Boston in 1877. New Haven saw the first regular telephone exchange in 1878. Early switchboards were manned by boys. Toward the close of the 19th century the myriad of overhead tele phone wires in large cities became such an obstacle to effective fire fighting and were so subject to snow and sleet damage that it was necessary to develop overhead cables. In 1888 it was possible to squeeze 100 wires into a large cable; today more than 4,000 strands can be encompassed in a cable about the size of a man's wrist. Experiments with underground telephone cable began in 1882, but it was not until 1902 that the first long-distance buried cable was placed in operation-between New York and Newark, N.J. The first cross-continent cable line was opened in 1942. There are now six coast-to-coast telephone wire lines-two cable and four largely open wire. Submarine telephone cables have long connected this country with Cuba. The first transatlantic telephone cable----eonnecting Newfound land with England-was opened in 1956. Later that same year a submarine telephone cable from Washingtcn (State) to Alaska was put into operation. Hawaii was linked by telephone cable with the mainland in 1957. A telephone cable to France was opened in 1959. Development of the telephone is strikingly reve",led in the evolu tion of its instruments. For ex",mple, it is a far cry from the stream lined di",1 h",ndsets of today to the cumbersome wall hand-rung models of '" few genemtions "'go. It is an oddity that the dial telephone was invented by ",n under taker-Almon B. Strowger of Kansas City. He devised it about 1889. The first dial exchange was installed ",t L", Porte, Ind., in 1892. Most domestic telephones "'re now dial operated for local calls, and long distance di",ling is increasing. Coaxial c",ble had its first experimental operation between New York and Philadelphia in 1936. Commercial service was in",ugur",ted between Stevens Point, Wis" and Minneapolis in 1941. It proved so successful that the American Telephone & Telegraph Co. is now using many coaxial links in its national cable-microwave system. This coast-to-coast service was inaugurated in 1951 when the Japanese Peace Conference in San Francisco was televised. The coaxial c",ble is designed to h",ndle radiobroadcast and television progr",ms as well 172 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION as telephone and telegraph traffic. One pair of coaxial units is capable of carrying 1,860 simultaneous telephone conversations or, alterna tively, 18 telegraph circuits. Not many radio listeners are aware that few aural broadcast pro grams t.ravel through the air exclusively. Most of them are sent over telephone wires, many across the continent. Broadcast stations also depend upon telephone wire facilities to connect their studios and transmitters. In the early days of the telephone, many cities and towns had rival telephone systems. Philadelphia was the last major area to give up dual service, doing so in 1943. The first Bell telephone company started in 1878. It developed into the American Telephone & Telegraph Co., incorporated in 1885. The latter and its subsidiaries comprise the "Bell System," which provides a variety of communication services. Many independent telephone companies also operate, largely in the rural areas. Most of them connect with the Bell System. Radiotelegraph The advent of radio was a natural result of advances made in the fields of electricity and magnetism. It paved the way for develop ment of wireless communciation, first by telegraph and then by telephone. In the 1860's Maxwell predicted the existence of radio waves, and in 1886 Hertz demonstrated that rapid variations of electric current could be projected into space in the form of radio waves similar to those of light and heat. There was other pioneer experimentation-in fact, a U.S. patent on a wireless system was issued as early as 1872-but it remained for Guglielmo Marconi, an Italian inventor, to give practical demonstra tion of the feasibility of radio communication. Marconi sent and received his first radio signal locally in Italy in 1895. In 1899 he flashed the first wireless signal across the English Channel and 2 years later received the letter "s" telegraphed from England to Newfoundland. This was the first successful transatlantic radio transmission. Marconi also sentthe first eastwardtransatlantic radio telegraph message-in 1902. These activities aroused world interest. The result was that the first general application of radio was for marine telegraphy. In 1899 the U.S. Army established wireless communication with a light ship off Fire Island, N.Y. Two years later the Navy adopted a wireless system. In addition to visual signaling, the Navy had been using homing pigeons to send messages to shore. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 173 By this time a number of ocean steamships had installed wireless equipment. This prompted the first international wireless conference, held at Berlin in 1903. Sea disasters proved the new medium to be an effective aid in rescue work, as well as for communicating between ships and between ships and shore points. The first radio distress call from an American vessel (a Navy relief ship) has been traced to 1905. But J lICk Binns made world news iu 1909 when he remained at his post as radio operator on the stricken steamship Republic to summon aid with the then British radio distress call "CQD." Later that same year the SS .Arapahoe brought help with "SOS," which was adopted as an international radiotelegraph distress call in 1906 and is still in use. ("Mayday" was adopted in 1927 as the international distress call for radio telephony.) In1912 the ill-fated Titanic also resorted to wireless. By international agreement in 1927, the alphabet was apportioned among the nations for basic use in radio calls to identify both the nationality and the type of radio stations. Fessenden had been experimenting with wireless, and in 1906 was engaged by the U.S. Weather Bureau to experiment with radioteleg raphy to speed notice of weather conditions. Meanwhile, in 1901, radiotelegraph service was inaugurated between five Hawaiian Islands; in 1903. a Marconi station at Wellfleet, Mass., exchanged greetings between President Theodore Roosevelt and King Edward VII; in 1905 the naval battle of Port Arthur in the Russo-Japanese war was reported by wireless; in 1909 Robert E. Peary, polar ex plorer, radiotelegraphed: "I found the Pole"; in 1910 Marconi'opened regular America-Europe radiotelegraph service which, several months later, enabled an escaping British murderer to be apprehended on the high seas; and in 1912 the first transpacific radiotelegraph service was established, linking San Francisco with Hawaii. Oversea radiotelegraph service developed slowly, due primarily to the initial use of spark and arc sets which were unstable in operation and caused much interference. The Alexanderson high-frequency alternator and the De Forest tube were the answerto many of these early technical problems. During the First World War, governments began using radio'tele graph to keep abreast of events and to direct the movement of troops and supplies. World War II not only further demonstrated the military value of radio but spurred its development and utilIzation for peacetime purposes. " . Today six American companies operate point-to-point radio tele graph circuits between the continental U.S. and foreign countries. They are RCA Communications, Inc. (organized in 1929); Mackay 174 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Radio & Telegraph Co. (1926); Globe Wireless, Ltd. (1930); Press Wireless, Inc. (1929); Tropical Radio Telegraph Co. (1913); and United States-Liberia Radio Corp. (1928). Through their facilities it is possible for anyone almost anywhere in the United States to send a radiogram to almost any place in the world. At present there is no domestic radiotelegraph service on a national basis. Two radio communication companies had domestic networks connecting certain large cities, but these were closed down in World War II and were not reopened. However, microwave and other developments make it possible for domestic telegraph communication to be carried in substantial part over radio circuits. In 1945 Western Union established a New York-Philadelphia microwave link. This was expanded in 1948 into a system connecting Washington and Pittsburgh. By 1958 it had been extended to Cincinnati and Chicago, with links to Kansas City and St. Louis under way. This system is able to transmit 2,000 telegrams simultaneously in each direction. Radiotelephone The first time the human voice was sent by radio is a subject for debate. Claims to that distinction range from "Hello Rainey" spoken by Stubblefield to a partner in a localized test near Murray, Ky., in 1892, to an experimental program of talk and music sent by Fessenden from Brant Rock, Mass., in 1906, which was heard by radio-equipped ships within a radius of several hundred miles. In 1915 speech was first transmitted successfully across the conti nent--e-New York City to San Francisco; also across the Atlantic -Ocean-from the naval radio station NAA at Arlington, Va., to the Eiffel Tower in Paris. There was some experimental military radio telephony in World War I, between ground and aircraft. The first ship-to-shore two-way radio conversation occurred in 1922, -between Deal Beach, N.J., and the SS America, 400 miles at sea. However, it was not until 1929 that high-seas public radiotelephone service was inaugurated. At that timetelephone contact could be made -only with ships within 1,500 miles of shore. Today it is possible to telephone nearly every large passenger liner wherever it may be on the globe. Commercial radiotelephony linking America and Europe was -opened in 1927", and with South America 3 years later. In 1935 the first telephone call was made around the world, using both wire and radio circuits. Until 1936, all American transatlantic telephone communication had to be routed through England. In that year a direct radiotele phone circuit was opened to Paris. Others followed. Direct radio telephone circuits now connect the United States with some 125 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 175 foreign countries, which in turn connect with many other countries. Microw",ve telephone tmnsmission w"'" first sent &Cross the English Ch",nnel in 1930. The first microw",ve system in this country for telephone service, between Boston "'nd New York, w"'" placed in oper",tion in 1947. The first oversea telephone c",11 from a moving automobile w"'" made from St. Louis to Honolulu in 1946. An inter national microw",ve "sc",tter" tr"'nsmission circuit Wll,S inaugur",ted between Florid", md Cub", in 1957. Microw",ve is being used in crell,Singly to be",m telephone md telegr",ph me8Sltges "'nd TV pro gmms over ch",ins of rel",y st",tions. The U.S. termin"'ls .of direct over""", radiotelephone circuits con necting this country ",re all opemted by the Americ"'n Telephone & Telegr",ph Co. "'nd tie in with the domestic telephone system. Broadcast As indic",ted in the reference to milio telephony, there were m",ny experimental ",udio tmnsmissions, but it was not until ",iter World W",r I th",t regul"'r browcll,Sting beg",n. The first system used Wll,S AM (",mplitude modulation). Alii broadcaat.-Licensing of bro",dcast stations on '" regul",r b"'sis beg&n in 1921. The first st",tion so licensed Wll,S WBZ, Springfield, Mll,SS. Some broadc",st st",tions developed from experimental opem tions prior to th",t d",te. A pioneer in this respect Wll,S KDKA, Pittsburgh, P",. There Wll,S experimental network opemtion over telephone lines "'" e",rIy "'" 1922. President Coolidge's message to Congress Wll,S brow c","t by six stations in 1923. In 1926 the N",tional Bro"'dcasting Co. started the first regul"'r network with 24 st",tions. Its first coast-to \lOll,St hookup w",s in 1927. In the l",tter ye",r the Columbi'" Bro",d cll,Sting System w"'" organized. The first round-the-worId bro",dc",st w",s made in 1930. Before 1923, r&diobroadcast Wll,S localized. Tod",y, th",nks to tele phone lines, co",xial c",ble, microw",ve, "'nd other relay me"'ns, it is possible to send the s",me progrll,ill over m",ny stations simultmoously. Flit broadoll8t.-Though a p",tent on frequency modul",tion was issued in 1902, the principle of FM had been known previously. How ever, its adv",ntages for bro",dc",sting were not developed until shortly before WorId W",r II. L",rgely "'s a result of FM developmental work by Edwin H. Armstrong in the 1930's the Fedeml Communi c",tions Commission in 1940 ",uthorized commercial FM broadc",sting to st",rt J",nu",ry 1, 1941. There Wll,S no "first" inilividu"'l commerci",l FM ",uthorization be cause, on October 31, 1940, the Commission gr",nted construction 176 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION permits to 15 such stations simultaneously. The first licensed com Jllercial FM station was WSM-FM, Nashville (May 29, 1941), which operated until 1951. TV b1'Oadaast.-The beginning of visual radio has been traced to· 1884 when Nipkow, a German, patented a scanning disk for trans mitting pictures by wireless. In our own country, Jenkins began study of the subject about 1890. Rignoux and Fournier conducted "television" experiments in France after the turn of the century. In 1915 Marconi predicted "visible telephone." In 1925 Jenkins demon strated his mechanical TV apparatus. A year later there were experiments by Alexanderson, Farnsworth, and Baird. An experimental TV program was sent by wire in 1927, between Washington and New York, by the Bell Telephone Laboratories. The next year on outdoor pickup was tested. Large-screen TV was demonstrated in a New York theater in 1930. Seventeen experimental TV stations were operating in 1937. An experimental mobile TV station was placed in use that year. The first U.S. President seen on TV was Franklin D. Roosevelt, when he opened the New York World's Fair in 1939. In 1939 the Milwaukee Journal filed the initial application to broad cast TV programs on a commercial basis. As a result of a hearing held in 1940, the Commission authorized commercial TV operation to start July 1, 1941. Meanwhile, a number of TV stations which had been operating experimentally applied for commercial authorization. The first grant looking to regnlar TV operation was issued to WNBT, New York, on June 17, 1941, effective July 1 of that year. As a result of proceedings which started in 1948, the Commission on April 14, 1952, added 70 UHF (IDtra High Frequency) channels to the 12 VHF (Very High Frequency) channels then used for TV broadcast, thus making more than 2,000 channels available for assign ment in nearly 1,300 communities throughout the United States. 00101' TV.-Color television had long been a subject for study and experimentation. In 1928 Baird, in England, demonstrated one sys tem. The next year color was sent over wire in a test at the Bell Telephone Laboratories. The question of color TV was considered initially by the Federal Communications Commission in 1941, when it proposed alternative standards for monochrome and color. In 1945 it allocated certain UHF frequencies' for experimentation in developing color and high definition black-and-white TV. It was not until 1946 that it received a formal proposal for the adoption of color standards. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 177 Proceedings during 1949-50 resulted in the Commission on Octo ber 11, 1950, adopting a color system which required special receivers <>r adapters. In so doing, it held the door open for consideration of subsequent developments and, as a result, adopted the present "com patible" color system in 1953. Edueatioruil broadaast.-University engineers helped to construct 'some of the Nation's pioneer AM broadcast stations, and many early broadcast licenses were issued to educational institutions. By 1925, educational groups held 171 such licenses. For various reasons, most of these stations were off the air when the Federal Communications Commission was created in 1934. However, some ,educational bodies still operate in the AM band, either commercially or without profit. To encourage the development of noncommercial educational broadcasting, the Commission in 1938 set aside certain AM channels for the exclusive use of educational institutions. Only a few educa tional institutions applied to use them, and most of these stations later changed to FM operation when the Commission allocated FM chan nels for noncommercial educational use, starting in 1941. As an additional incentive to educational broadcasting, the Como, mission in 1948 authorized low-power (10 watt) for noncommercial ,educational FM stations and, since 1951, has permitted remote control ,operation ofsuchstations. In its television decision'in 1952, the Commission allocated 242 TV channels for noncommercial educational purposes. This number has since increased. The first noncommercial educational TV grant was made July 23, 1952, to the Kansas State College of Agriculture and Applied Science (KSAG-TV). Miscellaneous Radio Services Amateur radio is almost as old as radio itself. There was some amateur operation at the turn of the century and, in 1912, several hundred self-styled "hams" were in radiotelegraph Communication with one another or listening-in on marine telegraph transmissions. The amateur fraternity, which now also uses radiotelephony, has been highly instrumental in popularizing and advancing the radio art. Police radio is among the older public safety services. As early as 1916 the New York City police department operated a radio station to communicate with its harbor patrol boats. The Detroit police de partment experimented with radio communication in 1921, using the significant call letters "KOP." The first State police radio system Was ,established in 1923 by Pennsylvania. The first construction permit 178 IlEPOIlT OF THE FEDEfu\L COMMUNICATIONS COMMISSION for a two-way police radio system was issued to Bayonne, N.J., iu 1932, but Port Jervis, N.Y., obtained the first license. Radiofrequencies for railroad use became available in 1927. Radio telephone service for train passengers was inaugurated by the Balti more & Ohio and Pennsylvania Railroads in 1947, between New York and Washington. Pictures have been transmitted by radio since 1923 when a photo graph was sent from Washington to Philadelphia in a test. A year later the Radio Corporation of America made the first transatlantic radiophoto transmission when a photograph of Charles Evans Hughes was received in New York from London. RCA inaugurated regular transatlantic radiophoto service in 1926. Today radio is used for a variety of purposes other than common carrier and broadcast. Nonbroadcast operations regulated by the Federal Communications Commission include aviation; marine; pub lic safety (police, fire, local government, forestry-conservation, high way maintenance, special emergency, etc.) ; industrial (business, in dustrial, power, petroleum, forest products, motion picture, relay press) ; land transportation (railroads, buses, trucks, taxicabs, auto mobile emergency, etc.) ; disaster communications; experimental; and individuals (commercial and amateur operators and private citizens). FCC LOG HIGHLIGHTS Following is a capsule chronology of highlights gleaned from re leases and annual reports of the Federal Communications Commis sion during its 25 years of operation. The dates shown are largely those of the covering releases and do not necessarily indicate the dates theactions were taken. 1934 June 19 President signs Communications Act establishing FCC. July 11 Commissioners take office and hold first meeting. July 17 Commissioners organize into 3 divisions-Broadcast, Telegraph, and\: Telephone. Aug. 21 Broadcast stations required to file ownership information. Dec. 14 Filing of rates prescribed for common carriers. 1935 Jan. 22 Recommends to Congress that no fixed percentages of AM broadcast :facilities be allocated for education at this time; outlines course ot Commission action to promote educational broadcast. Mar. 15 President approves telephone investigation by Commission pursuant to. Senate resolution. June 19 Adopts uniform system of accounts for telephone companies. Aug. 14 Annual reports required of common carriers. Dec. 18 First rules of practice and procedure adopted. REPORT OF THE FEDERAL COMMUNICATIONS COMMJ;SSION 179 1936 Apr. 6 Oalls engineering conference on problems of allocating frequencies to different radio services. May 19 Authorizes zone and interzone police radio stations. June 5 Congress repeals Davis amendment to Communications Act which set up 5 zones for allocation of broadcast facilities. June 19 Senate ratifies safety of life at sea convention (London, 1929). Dec. 10 Supreme Court affirms right of Commission to prescribe uniform sys tem of accounts for common carriers. 1937 Mar. 10 Two types of ship auto alarms approved. Mar. 29Communlcat~onsAct" amended to permit waiver of license for opera· tion of automatic transmitting devices. May 20 Communications Act amended to require radio installations on certain ships. Oct. 13 Commissioners abolish Broadcast, Telephone, and Telegraph Divisions. Dec. 13 First North American Regional Broadcasting Agreement signed. 1938 Jan. 20 Mar. 18 Mar.23 Apr. 1 May 1 June 15 June 22 July 2 Nov. 7 Nov. 21 Issues report on "Social and Economic Aspects of Radio Broadcasting". Investigation of chain (network) broadcast practices instituted. Broadcast stations required to file annual financial reports. Proposed report on telephone investigation sent Congress. Issues study on distribution of broadcast facilities. Calls conference on radio needs for forest protection. Establishes Emergency Radio Service. Political broadcast rules adopted. Confers with networks to discourage indiscriminate use of words "flash"and "bulletin" in nonnews broadcasts. First rules for low-power radio frequency devices adopted. 1939 Jan. 3 First application received for a commercial TV broadcast station. Jan. 16 Frequencies allocated for forestry radio use. Mar. 13 Reports on allocation of frequencies from 30,000 to 300.000 kilocycles. May 16 General rules and regulations adopted. May 18 Fixed public radio service rules adopted. May 22 First Commission committee report on TV broadcast studj'. May 23 Adopts rules for international and experimental broadcast services. June 14 Final report on telephone investigation sent Congress. June 19 Senate resolution authorizes FCC investigation of telegraph industry. June 22 AM broadcast license period extended from 6 months to 1·year. Aug. 1 AM broadcast standards become pflective. Oct. 1 Establishes Experimental Radio Service. Dec. 21 Commission committee report looks to limited TV commercial broad casting. 1940 Jan. 3 Merger of Western Union and Postal telegraph companies recom mended to Congress. Jan. 21 International section of telegraph investigation report sent Congress. J'an. 23 Reports on AM broadcast stations owned or controlled by newspapers. May 7 May 20 May 28 180 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Feb. 25 Merger of international telegraph carriers recommended to Congress. Feb. 26 Private radio service not in public interest at this time because of lack of frequencies. Feb. 29 Li-mited TV commercial broadcast authorized -to start Sept. 1. (Sus pended Mar 22 for further hearing.) Mar. 25 Supreme Court upholds Commission in Bcmder8 (economic injury) broadcast case. Mar. 29 Five "lottery" programs referred to Attorney GeneraL (On Apr. 10 he advises that prosecution is not warranted.) Experimental railroad yard radio use authorized. FM broadcasting put on a commercial basis (effective Jan. I, 1941). Full commercialization of TV broadcast indicated as soon as industry agrees on standards; meanwhile will authorize further experimenta tion. June 12 Oommissioo's special broadcast network investigating committee sub- mits report. June 2:T Field force expanded to handle national defense duties. Sept. 24 FCC Chairman heads new Defense Oommunications Board. Oct. 81 First commercial FM broadcast applications granted. Dec. 16 Reports to Congress on radio needs for Great Lakes and inland waters. 1941 Jan. 16 Adopts Mall/IDWef" decision frowning on editorializing by broadcast licensees. .Jan. 27 National Television System OOmmittee proposes uniform TV broadcast standards to inclusion of color. Feb. 26 Foreign Broadcast Monitoring Service established. Feb. 27 Proposes alternative standards for monochrome and color TV broadcast. Mar. 19 Initiates inquiry of newspaper ownership of broadcast stations. Apr. 1 Institutes telephone rate inquiry. Apr. 30 Adopts National Televisis>n System Oommittee standards. paving way for commercial TV broadcasting to start .July 1. May 2 Report on broadcast network investigation requires National Broad- casting Co. to dispose of 1 of its 2 networks. June 24 First radiotelephone service for Mississippi River system authorized. Oct. 11 AM broadcast license period extended from 1 to 2 years. Oct. 18 Recommends to Oongress that act be amended to permit merger of Western Union and Postal telegraph companies. Nov. 13 Chain broadcasting rules postponed pending de:termination of pre liminary injunction. Dec. 7 Amateur radio operation suspended for duration of emergency. Dec. 10 President delegates Defense Communications Board certain emergency authority under Communications Act. Dee. 21 Commission gives priority to national defense activities. Dec. 30 Defense CommunicatiollB Board puts all ship radio facilities under Navy control. 1942 Jan. 26 Communications Act amended with respect to President's war powers. Feb. 16 District Oourt holds that radio transmissions know no State boundaries. Feb. 17 2·year license term for nonbroadcast radIo stations in new staggered renewal plan. REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 181 Feb. 24 Commission bans broadcast station construction with materials needed for war. Apr. 16 Defense Communications Board requires registration of radio frequency apparatus. Apr. 21 Radio operator requirements relaxed because of manpower shortage. May 18Regi~1;rationof medical diathermy apparatus required as war measure. May 19 Executive order directs Commission to help protect communication fa· ciUties from sabotage. June 8 Registration required of unused radio transmitters. .June 12 'War Emergency Radio Service established. June 15 Defense Communications Board renamed Board of War Communica.. tions. June 19 Amateurs required to !egister their transmitters. June 30 Board of War Communications closes domestic point-to-point radio telegraph circuits. July 7 Inquiry ordered into gearing telegraph operations more closely to war effort. July 23 Board of 'Var Communications terminates certain international radio· telephone communication. July 28 Name of Foreign Broadcast Monitoring Service changed to Foreign Broadcast Intelligence Service. Oct. 29 Board of 'Var Communications estaulishes priority system for telephone calls. Nov. 5 Board of WarCommunie~ltionsorder spurs harnessing telegraph serv ices to war effort. Nov. 20 Radio licensees reqUired to report surplUS equipment. Dec. 1 No further wire and telephone grants if construction involves use of critical material unless military Or vital Pllblic need is involved. Dec. 2 Bell System directed to eliminate pension accounting from operating expense. Dee. 18 Board of 'Val" Communications orders discontinuance of nontelegraphic services by telegraph industry; bans transmission of domesticcon~ gratulatory messages. Dec. 29 Communications Act further amended with respect to war powers of President. 1943 .Jan. 19 House adopts Cox resolution to investigate FCC. Civil Air Patrol radio stations established. Jan. 21 Board of War Communications orders priority for telegrallls essential to war effort or public safety. Mar. 6 Communications Act amended to permit merger of Western Union and Postal telegraph companies. May 10 Supreme Court upholds validity of chain broadcasting regulations. (They go into effect June 15.) July 6 FM broadcast stations permitted to duplicate programs of affiliated .AM stations. Aug. 24 New call system for FM broadcast stations replaces letter-numeral calls. Sept. 22 Initiates investigation of telephone and telegraph facilities use to dis seminate racetrack information. Sept. z:T Approves merger of Western Union and Postal Telegraph companies. ~25681-69--13 182 REPORT OF TB;1il FIilDIilRAL COMMUNICATIONS COMMISSION Nov. 23 Broadcastmultipl~wnershiprule adopted to ban dual control by same interest in same service ares. Dec. 14 AM broadcast licenses extended from 2 to 3 years. 1944 Jan. 13 Dismisses proceeding concerning newspa.per ownership of broadcast stations; to report findings to Congreas. Mar. 22 House committee hears FCC testimony on domestic foreign-language broadcasting. May 2 Hearing ordered on railroad radio requirements. June 20 Authorizes first experimental microwave telephone system (between New York and Boston). July 25 Asks Congress direction on policy to follow in considering sales ot broadcast stations where price is in excess of value of physical property. Aug. 17 Bans broadcast mechanical reproductions being simulated as live talent. 1945 Jan. 4 FCC and Board of War Communications request common carriers to conserve facilities and manpower used in disseminating racetrack information. Jan. 15 Proposed report on commercial monochrome TV broadcast. Feb. 20 Hearing scheduled on possible changes in AM broadcast "clear channel" allocations. Mar. 21 'Vestern Union authorized to use experimental microwave link. May 18 Asks industry cooperation in studying desirability of moving FM broad· cast to higher portion of spectrum. May 21 Proposed report on frequency allocations below 25 megacycles. May 25 13 VHF channels allocated for commercial TV broadcast; need for more space cited; UHF channels made available for experimentation and future TV development to inclusion of color. Final report on frequency allocations between 25 and 30,000 megacycles. June 27 FM broadcast to move from 42-50 megacycles to 88-108 megacycles; 80 channels for commercial use and 20 channels for education. Aug. 3 Opens broadcast station ownership data to public inspection, but not financial data or contracts of individual stations. Aug. 7 Removes wartime restrictions on use of critical materials for radio station construction. Aug. 14 To issue experimental authorizations to test two--way radiotelephone service on land, water, and in the air. Aug. 17 Reassures FM industry that 88-108·megacycles band is ·'permanent home" of FM broadcast. Sept. 6 Proposes that interested parties have opportunity to apply for licenses of broadcast stations offered for sale. Sept. 23 Considers rules to curb interference from radiofrequency apparatus. Oct. 31 Orders investigation of use of telephone recording devices. Nov. 16 Adopts new system of numbering FM broadcast channels. Nov. 28 Reports on survey of rural attitude toward broadcast service. Dec. 5 Foreign Broadcast Intelligence Service ceases operation. Dec. 13 First experimental authorization for use of radar. Dec. 31 Railroad Radio Service activated. Jan.14 Feb. 25 Feb.27 Mar. 7 Apr. 16 May 9 May 14 June 21 July 1 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION 183 1946 AM Hclearchannel" hearingstarts. Interim North American Regional Broadcasting Agreement signed. First regular railroad radio grant. Adopts report on "Public Service Responsibility of Broadcast Licensees". "Petrillo amendment" added to Communications Act. Broadcast stations permitted to reduce power during coal shortage. First grant to test proposed rural radiotelephone service. Announces master plan for policing expanded postwar radio spectrum. Field Division and Radio Intelligence Division merged into Field Engineering and Monitoring Division. July 19 Scott decision by FCC holds atheists entitled to broadcast consideration. Aug. 12 Public Utility Radio Service authorized. Sept. 13 FCC presents some original Samuel F. B. Morse papers to National Archives. Sept. 25 Adopts revised frequency allocation below 25,000 kilocycles. Sept. 27 Receives first petition by network for color TV operation. (Opens hearing Dec. 9.) Dec. 30 Frequency made available for emissions ot radIo energy-using apparatus. 1947 Jan. 6 Broadcast station announcement "By authority of the FCC" not re quired by statute or regulation. Jan. 8 "Freeze" placed on consideration of new AM broadcast station ap- plications pending disposition of pending backlog. (Lifted May 1.) Feb. 25 Board of War Communications abolished. Feb. 26 First aeronautical mobile utility radio station grant. Mar. 12 Institute's investigation of international telegraph rates. Mar. 18 First petition for commercial TV color operation denied; further ex perimentation urged, with particular reference to accommodating color in 6-megacycle bandwidth used for monochrome. May 8 Proposes rules for "daytime skywave" AM broadcasting. May 16 A.tlantic City telecommunications conference opens with FCC Chair- man presiding. (Pact signed Oct. 3 by participating nations.) June 13 Tentative allocation plan for class B FM broadcast stations adopted. June 80 Rules governing industrial, scientific, and medical service e:ffective. July 1 Old FM broadcast channels opened to other services. July 15 First postwar FM and TV broadcast licenses issued. July 16 Post Roads Act of 1866 repealed; eliminates special domestic telegraph rates to Government. July 28 Launches Inquiry of. "wired-wireless" operations. Aug. 11 Warns broadcasters against surrendering responsibilities under adver tising or other contracts. Sept. 8 Schedules hearing on broadcast editorializing in light of interpreta tions of M allftower decision of 1941. Nov. 4 Issues report on "An Economic Study of Standard Broadcasting". Nov. 26 Use of telephone recording devices approved, subject to tone warning that conversation is being recorded. 184 R\ilPORT OF THE FI!lDE8AL COMMUNICATIONS COMMI88ION Dec. 4 "Clear channel" and lldaytime skywave" AM broadcast proceedings consolldated. Dec. 10 Ship radar becomes regular service. \948 Apr. 30 Rules governing miscellaneous radio equipment become effective. May 1 Fl\tJ broadcast license period extended from 1 to 3 years. June 14 TV channell deleted. June 28 FCC Port Huron decision holds broadcast stations cannot censor broadcasts of political candidates. July 15 Regular facsimile service by FM broadcast stations permitted. July 21 Hearing called on broadcast sale of national spot advertising and other eommercial time. Aug. 8 Proposes rules to ban broadcast of lotteries and other gift programs. Sept. 1 Lottery and obscenity ban in Communications Act transferred to United States Code. Sept. 27 Rules forlow~poweroperation of FM educational broadcast stations effective. Sept. 30 TV broadcast applications "frozen" pending study of general TV situation. Oct. 21 First low-power educational FM broadcast grant. Jan. 7 Feb. 21 Mar.9 Mar. 11 Mar. 16 Mar. 30 Apr. Z1 June 2 July 11 Aug. 18 Oct. 14 Dec.21 Jan. 12 Feb.8 Mar.9 1949 Adopts rules relating to reservation of broadcast time in station sales. Proposes repeal of "Aveo" requirement concerning advertising for bids on broadcast station sales. (Repealed June 9.) Publication of employment data concerning common~arriersand broadcast stations transferred to Department of Labor. First type approval of arc welder meeting noninterference requirement. First experimentalharbor~shoreradar system authorization. Citizens Radio Service rules adopted (effective June 1). Industrial and Land Transportation Radio Services established (ef fective July 1). Commission separates administrative and prosecutory functions; Ohairman made responsible for internal 'aft'aira of Oommlssion. Report holds broadcasters have right to editorialize subject to afford ing opportunity for opposing views. (Reverses MaYflower decision of 1941.) Proposes to add UHF channels for TV broadcast, consider color, re serve channels for education, etc. Adopts rules concerning lotteries and "giveaway" broadcast programs. (Postponed Sept. 21 because of litigation.) First regular license for pubUc mobile radiotelephone service. Bell System reqUired to permit interconneet1on of its intercity TV relay facilities with private systems. 1950 Proposes rules to curb trafficking in transfer of broadcast station con struction permits. FIrst authorization to test subscription TV. Commission reorganizes staff on functional lines. Jan. 19 Feb.l Feb.7 Aug. 1 Oct. 10 Oct. 24 REPORT OF THE FEDERAL COMMUNICATIONS COMMISS10N 185 June 5 Supreme Court upholds rules banning contracts for resetvaUon of broad cast time in station sales. July 21 Inquiry into BRIe of national spot advertising by networks insu1:Dclent to conclude that it violates chain broadcasting rules but stiU~on· sidering whether it is in public interest. Aug. 25 Proposes frequency service assignments below 27,500 kilocycles. Sept. 1 First report in TV color proceeding finds "field sequential" system only one meeting FCC criteria but, because it cannot be received on monochrome sets, proposes postponing decision if manufacturers will equip future monochrome receivers to get color in black and white. Establishes third-class radiotelephone and radiotelegraph grades ot radio operators. Oct. 11 Second report in TV proceeding finds response of set makers to Sept. 1 proposal insufficient and adopts field sequential color system, effec tive Nov. 20, but holds door open for new developments. Nov. 24 Authorizes second subscription TV test. Dec. 15 President declares state of national emergency. 1951 Institutes investigation of interstate and foreign telephone rates. Rules for marking and lighting of transmitting antennas efrective. First grant for remote control of low-power educational FM broadcast station. Mar. 21 DIsaster CommunicatIons Service establlilhed. (First authorization May 29.) Mar. 22 Further rulemnking in TV proceeding looks toward adopting standards, adding UHF channels, nationwide allocation plan, reserving educa tional channels, and lifting "freeze." May 28 Supreme Court upholds validity of FCC decision adopting field se quential TV color system. June 21 Third report in TV proceeding holds partial lifting of "freeze" not appropriate at this time. Engages management study firm to survey Commission units not covered in previous reorganization. July 12 Fourth report in TV proceeding allots 5 additional UHF channels for TV broadcast. July 26 Fifth report in TV proceeding enables existing TV stations to increase power subject to final determination. Broadcast station renewals placed on geographic basis. Third authoriZation to test subscription TV. Communications Act amended to give President emergency powers over electromagnetic radiation. (On Dec. 10 he authorizes FCC to draft and enforce such regulations.) Nov. 20 National Production Authority bans manufacture ot color sets tor public sale to conserve materials. (Relaxed June 24,1~52.) Feb.l Mar.2 1952 Industrial Radiolocation Service activated. RedistrIbution and realinement of staff duties mark final step in Commission reorganization. 186 REPORT OF THE FEDERAL COMMUNICATIONS COMMISSION Apr.14 Apr.22 July 16 July 23 Aug.I5 Oct. 9 Oct. 15 Dee.2 Sixth report in .TV proceeding lifts "freeze"; adds 70 UHF channels, allocates VHF and UHF channels throughout Nation, and reserves 242 channels for education (effective July 1). First microwave system grant in Special Industrial Radio Service. President signs McFarland amendments to Communications Act chang· log FCC procedures in many particulars. First educational TV broadcast station grants. Radio Amateur Civil Emergency Service activated. Not sutDcient evidence to require Bell and Western Union systems to connect their facilities for TV program relay purposes. Processing of competing TV broadcast applications suspended to con centrate on noncompetitive workload. Announces CONELRAD plan for AM broadcasting in national emer gency to minimize use of transmissions as enemy navigation aids. (Subsequently extended to all radio services.) 1953 Feb. 19 First TV share-time broadcast authorization. Feb. ZT Finalizes rules for painting and lighting of transmission antenna towers. June 25 Decides that theater TV does not merit special frequencies and should continue to use common carrier facilities. July 2 Proposes advertising by all applicants for new TV broadcast stations. (Withdrawn Feb. 1, 1954.) July 17 Adopts code of ethics for FCC employees. Aug. 10 Separates "clear channel" and "daytime skywave" AM broadcast proceedings. Sept. 30 Defers hearings on competing TV applications in cities which have 4 or more operating TV stations. Nov. 5 License term of TV broadcast stations increased from 1 to 3 years. Mar. 3 Budget Bureau directs FCC to establish fees for licensing and other services. (Fees proposed by FCC on Jan. 28, 1954. but suspended thereafter because of Senate resolution for delay.) Nov. 27 Multiple-ownership broadcast rules amended to limit control by same interest to not more than 7 AM, 7 FM, and 5 TV broadcast stations. Dec. 17 Approves industry's proposed compatible-color TV standards; replaces incompatible system. Dec. 31 Proposes to enable FM broadcasters to render supplemental I